The National Restaurant Association of India (NRAI) has announced that it will file a complaint against food delivery giants Zomato and Swiggy. The authority would be pursuing a legal action against the platforms for attempting to monopolise the market.
The move comes in response to the companies’ recent ventures into private labelling and quick commerce food delivery through separate platforms like Blinkit Bistro and Swiggy Snacc.
NRAI has accused the two firms of breaching marketplace neutrality, arguing that their actions create an unfair advantage in the food delivery ecosystem.
NRAI president Sagar Daryani, “What we are absolutely not okay with is 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 association has claimed that by leveraging their dominant positions and access to restaurant data, Zomato and Swiggy are cannibalising the businesses of restaurants that rely on their platforms. It also raised concerns about potential violations of the Copyright Act and other legal frameworks.
The authority said that this strategy undermines fair competition and threatens the survival of thousands of restaurants across India.
It also assured taking all available legal remedies to safeguard the interests of the restaurant industry.
“This includes filing complaints with relevant regulatory authorities and initiating legal action to prevent Zomato and Swiggy from monopolising the market.” it stated.
Zomato and Swiggy have not commented on the allegations, with queries sent to both companies remaining unanswered.
