CCI Dismisses Complaint Against Swiggy

On June 19, 2020, CCI dismissed an allegation of abuse of dominance against Bundl Technologies Private Limited (‘Swiggy’)[1].

The informants alleged that the food rates charged by Swiggy on its website and application are much higher than the rates offered by the restaurants at their outlets, over and above delivery charges levied by Swiggy. The informants further alleged that Swiggy intentionally refrained from disclosing to its customers that it levies rates which are higher than those on the original menu of any particular restaurant. This led the customers to believe that only delivery charges were applicable on their order. This practice, amounted to imposition of unfair prices on customers, in violation of Section 4(2)(a) of the Act.

Based on information received from Swiggy, CCI observed that Swiggy had no role to play in the pricing of products offered by the restaurants on its platform, and it did not modify or select the information posted by the restaurant partners. CCI also noted the existence of agreements between Swiggy and the restaurant partners under which the restaurants had to maintain a uniform price of food items both on and off the Swiggy platform. CCI finally noted that historically, Swiggy would take up any complaint on difference in pricing from its customers with the concerned restaurant partner as and when such complaint was received. Based on this CCI observed that the allegations against Swiggy were unsubstantiated and thus dismissed the complaint.

[1] Prachi Agarwal & Anr. v. Swiggy, Case No. 39 of 2019, order delivered on 19 June 2020.

Published In:Inter Alia Special Edition - Competition Law - July 2020 [ English
Date: July 18, 2020