NRAI To Sue Zomato And Swiggy For Attempts To Monopolize Food Delivery Market
NRAI To Sue Zomato And Swiggy For Attempts To Monopolize Food Delivery Market
Accuses online platforms of threatening the restaurant industry
The National Restaurant Association of India (NRAI) has announced that it will file a complaint against food delivery giants Zomato and Swiggy for unfair trade practices.
The Association alleged attempts to monopolize the market through recent ventures of private labeling and quick commerce food delivery via separate platforms like Blinkit Bistro and Swiggy Snacc. It claimed that the practices violated marketplace neutrality and threatened the restaurant ecosystem.
The NRAI accused the two firms of breaching marketplace neutrality. Sagar Daryani, the NRAI president said, "We are not okay with Zomato and Swiggy doing private labeling and selling food by themselves. In Zomato via Blinkit's separate Bistro app and Swiggy launching Snacc for quick food delivery."
The Association claimed that by leveraging their dominant positions and access to restaurant data, Zomato and Swiggy cannibalized the businesses of restaurants that rely on their platforms.
Raising concerns about potential violations of the Copyright Act and other legal norms, it assured taking legal remedies to safeguard the interests of the restaurant industry.
"This includes filing complaints with relevant regulatory authorities and initiating legal action to prevent Zomato and Swiggy from monopolizing the market,” the NRAI added.
