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Zomato and Swiggy Found in Violation of Competition Laws by India’s CCI

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Zomato and Swiggy Found in Violation of Competition Laws by India’s CCI

The Competition Commission of India (CCI) has determined that leading food delivery platforms Zomato and Swiggy have violated competition laws, as reported by Reuters. This investigation, initiated in 2022 following a complaint from the National Restaurant Association of India (NRAI), revealed practices that allegedly favored select restaurant partners, thereby undermining fair competition within the market.

Key Findings of the Investigation

The CCI’s probe highlighted several critical issues, primarily focusing on exclusivity agreements and restrictive pricing policies. Zomato reportedly engaged in “exclusivity contracts” with certain restaurants, allowing them to benefit from lower commission rates. In contrast, Swiggy provided growth guarantees to restaurants that committed to listing exclusively on its platform. These arrangements are seen as creating barriers for new entrants and stifling competition, ultimately impacting consumer choice.

Pricing Pressure and Market Dynamics

Both platforms were also found to exert pressure on restaurants to maintain uniform pricing across different platforms. Zomato enforced strict pricing and discount restrictions, including penalties for non-compliance, while Swiggy allegedly warned partners that their rankings would be adversely affected if they offered lower prices on competing platforms. Such practices have raised concerns about their impact on market competitiveness and the overall health of the food delivery ecosystem.

Impact on Market Value and IPO Prospects

The CCI’s findings were confidential but were shared with Zomato, Swiggy, and the NRAI in March 2024. Following the news of the investigation, Zomato’s stock experienced a 3% drop, indicating immediate market repercussions. Swiggy is facing additional scrutiny as it approaches its $1.4 billion IPO, which is set to be the second-largest in India this year. The CCI investigation has been cited as a potential “internal risk” in its IPO prospectus, highlighting concerns about compliance with competition laws.

Strategic Responses from Zomato and Swiggy

In light of the investigation’s findings, Swiggy ended its “Swiggy Exclusive” program in 2023 and plans to launch “Swiggy Grow,” aimed at expanding its services into non-metropolitan areas. Both companies have significantly transformed India’s food delivery landscape but are now also venturing into “quick commerce,” promising grocery deliveries within 10 minutes—a sector currently under separate scrutiny for alleged predatory pricing practices.

Regulatory Scrutiny in India’s Digital Market

The CCI’s investigation underscores the increasing regulatory scrutiny faced by digital platforms in India as they navigate aggressive growth strategies amid rising compliance demands. The final decision regarding potential penalties or required changes to business practices is expected soon, with both Zomato and Swiggy likely to challenge any adverse rulings.

This case not only highlights the complexities of competition law in India’s rapidly evolving digital market but also raises broader questions about how major players like Zomato and Swiggy balance innovation with regulatory compliance in an increasingly competitive landscape.

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2 Comments

2 Comments

  1. Binance

    May 4, 2025 at 6:31 am

    Can you be more specific about the content of your article? After reading it, I still have some doubts. Hope you can help me.

  2. binance

    October 17, 2025 at 1:31 pm

    I don’t think the title of your article matches the content lol. Just kidding, mainly because I had some doubts after reading the article.

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Zoho Pay Debuts as India’s New UPI Challenger, Taking on PhonePe, Paytm, and Google Pay

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Zoho Payment

Zoho Corporation has expanded its fintech portfolio with the launch of Zoho Pay, a UPI-based payments app built to challenge India’s top digital payment giants such as PhonePe, Paytm, and Google Pay. The new app supports peer-to-peer transfers, bill payments, QR-based transactions, and merchant settlements in a streamlined interface. Available as both a standalone app and an integrated feature inside Zoho’s privacy-driven messenger Arattai, Zoho Pay enables users to handle chats and payments in one platform, emphasizing data privacy and Made-in-India innovation.​

Through seamless integration with Arattai, Zoho Pay allows users to send or request payments, split expenses, and conduct UPI-based transactions directly in their chat windows. Users can link bank accounts, scan dynamic QR codes, and receive audio confirmations of payments, ensuring speed and security. This design mirrors the simplicity of India’s leading UPI apps but is powered by Zoho’s non-advertising, privacy-first model. The integration aligns with Zoho’s mission to build a self-reliant digital ecosystem, where messaging and money management coexist securely.​

In the competitive digital payments market, Zoho Pay differentiates itself through its tight business software integration with apps like Zoho Books, Zoho Payroll, and Zoho Commerce, offering small businesses unified access to payments, billing, and accounting. The company is also expanding its reach with POS devices for merchants featuring UPI QR, card payments, and instant reconciliation tools. With founder Sridhar Vembu’s vision of a ‘Chat + Pay’ ecosystem, Zoho Pay reflects a bold step toward redefining India’s fintech scene with a secure, ad-free, and locally developed alternative to global payment platforms.

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Meta Expands AI-Powered Reels Translation to Hindi and Portuguese, Enhancing Global Creator Reach

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Meta has expanded its AI-powered translation feature for Reels to include Hindi and Portuguese, joining English and Spanish in empowering creators to reach a broader global audience on Instagram and Facebook. Originally launched in August 2025 with support for English and Spanish, this update now allows creators to seamlessly translate and dub their short videos, breaking language barriers across some of the largest Reels markets worldwide. The AI technology mimics the creator’s voice tone and even offers lip-syncing to ensure the translated videos feel natural and engaging for viewers.​

This enhancement is especially significant for India, the largest market for Facebook and Instagram, where over 600 million people speak Hindi. Content creators who are not fluent in Hindi can now easily access this vast audience, increasing their reach and engagement across diverse linguistic groups. To maintain transparency, all translated Reels are clearly labeled with “Translated with Meta AI,” and viewers can choose to switch translations on or off based on their preference.​

In addition to voice dubbing, Meta is developing features to translate captions and text stickers on Reels, making content more accessible even without sound. These AI translation tools are available free for eligible public Instagram accounts and Facebook creator profiles with over 1,000 followers. This innovation reinforces Meta’s commitment to fostering cross-cultural content sharing and enhancing creators’ ability to connect with audiences around the world through short-form videos.

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Dunzo’s Collapse: Reliance’s ₹1,645 Crore Loss Signals Challenges in India’s Hyperlocal Delivery Market

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Startup Stories

Reliance Industries has officially written off its $200 million investment in Dunzo, a once promising quick-commerce startup in India. Despite high-profile backing and the potential to disrupt the hyperlocal delivery sector, Dunzo faced insurmountable challenges including high operational costs, unsustainable cash burn, and stiff competition from larger players like Zepto and Blinkit. Reliance’s decision follows Dunzo’s operational suspension, leadership exits, and failed attempts at securing additional funding or acquisition partners, ultimately resulting in the company’s digital platforms going offline in early 2025.​

The downfall of Dunzo was accelerated by its inability to maintain a healthy balance between rapid expansion and revenue growth, with losses in FY23 reaching an alarming ₹1,800 crore. With monthly expenses crossing ₹100 crore and mounting pressure to scale, Dunzo resorted to layoffs and delayed payments before shutting down most services outside Bengaluru. Reliance’s significant stake, initially seen as a strategic advantage, ended up limiting the startup’s flexibility in making independent decisions during its final months.​

Reliance’s write-off sends a strong message to India’s startup ecosystem about the risks inherent in quick-commerce and hyperlocal delivery models. Investors are increasingly focused on sustainable growth, disciplined scaling, and profitability. For Reliance, lessons from Dunzo’s collapse are shaping future e-commerce strategies, driving greater emphasis on operational efficiency and prudent financial planning in an intensely competitive market.

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