Zomato and Swiggy’s Dirty Tricks Exposed
Following a recent probe by the Competition Commission of india (CCI), which accused both platforms of participating in activities that damage competition, food delivery behemoths zomato and swiggy have come under scrutiny. According to the investigation, both businesses created an unequal playing field by entering into many exclusivity deals with nearby eateries.
For example, zomato gave eateries lower commission rates in exchange for exclusivity on the site. In a similar vein, Swiggy's now-canceled "Swiggy Exclusive" scheme offered partners increased sales in return for lowering their exposure on other platforms. Similar goals are pursued by Swiggy's future "Swiggy Grow" initiative, which is set to debut in smaller cities shortly and has raised a lot of worries. Subsequent research into the issue showed that the platforms enforced price parity provisions, which limited competition by requiring many eateries to maintain the same rates across all platforms.
People have publicly expressed their dissatisfaction on social media, which has taken these accusations quite seriously. One user referred to the platforms as "a monopoly disguised as convenience" and accused them of abusing their dominating market position. The firms had to deal with other repercussions in addition to being humiliated on social media. Zomato's stock fell 3% when the report was released, and swiggy was forced to declare the CCI probe to be "internal risk." If the businesses are found to have violated the Competition Act, they may even be subject to financial fines, although they will still be able to challenge the decisions.