Restaurant Association To Sue Zomato, Swiggy For Monopoly In Food Delivery Market
Restaurant Association To Sue Zomato, Swiggy For Monopoly In Food Delivery Market
The firms were criticized for their recent ventures, Blinkit Bistro and Swiggy Snacc
The National Restaurant Association of India (NRAI) is set to pursue legal action against food delivery giants Zomato and Swiggy for attempting to monopolize the market.
The move comes after the companies' recent ventures into private labelling and quick commerce food delivery through separate platforms Blinkit Bistro and Swiggy Snacc.
Accusing the firms of breaching marketplace neutrality, the Association claimed their actions created an unfair advantage in the food delivery ecosystem.
Sagar Daryani, the president of the NRAI stated, “We are absolutely not okay with Zomato and Swiggy doing private labelling and selling food by themselves. In Zomato via Blinkit's separate Bistro app and Swiggy launching Snacc for quick food delivery.”
The NRAI said that by leveraging their dominant positions and access to restaurant data, the two platforms cannibalized the businesses of restaurants that rely on their platforms. It raised concerns about potential violations of the Copyright Act and other legal frameworks.
The authority maintained that the strategy undermined fair competition, threatening the survival of thousands of restaurants across the country.
Assuring to take all available legal remedies to safeguard the interests of the restaurant industry, it held, “This includes filing complaints with relevant regulatory authorities and initiating legal action to prevent Zomato and Swiggy from monopolizing the market."
