Zomato, CCI get Delhi high court notice on restaurant body's plea in antitrust probe

The Delhi High Court on Monday issued a notice to the Competition Commission of India (CCI) and food delivery platform Zomato on a plea filed by the National Restaurant Association of India (NRAI). 

The NRAI's plea challenged its exclusion from the ‘confidentiality ring' in an ongoing case that the association had filed against Zomato and Swiggy in the CCI in 2021, citing anti-competitive practices. 

The confidentiality ring, introduced by the CCI in April 2022, allows limited access to commercially sensitive data to designated representatives of warring parties to ensure fair scrutiny during antitrust proceedings. 

In this particular case, NRAI was initially included in the ring, but was later excluded by a CCI order dated 14 October 2024, prompting the latest petition.

A bench led by justice Sachin Datta tagged the petition with a similar plea concerning Swiggy, in which the court had issued notice in November 2024. Both matters will now be heard together on 23 April.

NRAI also urged the court to review Zomato's confidentiality claims.

During the hearing, Zomato’s senior counsel argued that since NRAI comprises competing entities, certain sensitive commercial information cannot be disclosed to the association.

Also Read: Small restaurants, cloud kitchens heating up competition: Rakesh Ranjan, CEO, Food Delivery, Zomato

The background

The ongoing legal tussle stems from a 2021 complaint filed by NRAI, accusing Zomato and Swiggy of anti-competitive conduct. These allegations include mandating the use of their delivery services, concealing customer data from partner restaurants, imposing high commissions through restrictive agreements, and favouring their own or affiliated cloud kitchens.

The CCI, finding a prima facie case, launched a full-fledged investigation in 2022. After a year-long probe, the CCI's director-general submitted a confidential report in October 2023, based on data sourced from both platforms. 

In April 2024, the CCI allowed NRAI limited access to the report, subject to strict confidentiality safeguards and a requirement to destroy the data after the proceedings concluded.

However, Zomato and Swiggy challenged the CCI’s directive in the Karnataka High Court, arguing that disclosure—even under confidentiality safeguards—could cause irreparable commercial harm. They invoked Section 57 of the Competition Act, 2002, and Regulation 35 of the CCI (General) Regulations, 2009, which pertain to the treatment of confidential information.

In June 2024, the Karnataka High Court directed the CCI to revisit its decision. This led to the October 2024 order formally excluding NRAI from the confidentiality ring, triggering the current litigation—now focused on Zomato.

According to a report by brokerage firm Motilal Oswal, Zomato holds 58% of India’s food delivery market, while its recently listed competitor Swiggy commands the remaining 42%.