In a significant move, the Delhi High Court has issued a notice to Zomato and the Competition Commission of India (CCI) in connection with the ongoing Zomato Antitrust Probe. The order came while hearing a plea filed by the National Restaurant Association of India (NRAI), which challenged its exclusion from the ‘confidentiality ring’—a mechanism that enables involved parties to access confidential case-related data.
This development marks a fresh chapter in the legal battle that has been brewing since 2021. The NRAI originally filed a complaint accusing Zomato and Swiggy of anticompetitive practices like high commissions, delayed payments, deep discounting, and favouritism towards their own kitchen brands. In 2022, the CCI initiated a detailed probe. A confidential report was submitted in 2023, leading to partial disclosure of its contents to NRAI in April 2024. However, Zomato and Swiggy pushed back legally, citing commercial harm, eventually getting NRAI excluded from the confidentiality ring in October 2024.
NRAI then moved the Delhi HC, which has now clubbed the plea with a similar one involving Swiggy. Justice Sachin Datta will oversee the combined hearing on April 23. Zomato, in its defence, argued that NRAI comprises competing businesses, making full disclosure risky.
Interestingly, this legal escalation coincides with a CCI verdict stating that Zomato’s delivery and platform charges do not amount to abuse of dominance. Nevertheless, earlier internal findings had reportedly found both foodtech platforms guilty of limiting market competition.
As India’s food delivery space heats up, with Zomato controlling 58% of the market and Swiggy covering 42%, this antitrust case could redefine regulatory expectations and platform accountability. The Zomato Antitrust Probe thus remains pivotal for India’s digital economy, foodtech ecosystem, and competition law landscape.
1. Introduction to Zomato’s Business Model and Origins
Zomato, founded in 2008 by Deepinder Goyal and Pankaj Chaddah, started as a restaurant discovery platform. Headquartered in Gurugram, the company later pivoted to food delivery, hyperlocal logistics, and B2B kitchen services. Its revenue model primarily includes commission from restaurants, delivery fees from customers, advertising revenue, and subscription-based offerings like Zomato Gold (now Zomato Pro).
The startup rapidly expanded its services to cover almost all major Indian cities and numerous international markets before pulling out of some. Zomato raised significant capital from marquee investors including Info Edge, Sequoia Capital, and Ant Financial, leading to a successful IPO in July 2021.
1.1 Services and Products
Zomato offers:
- On-demand food delivery
- Cloud kitchen operations
- Restaurant promotions and ad solutions
- Subscription services
- Hyperpure: A B2B ingredient supply chain platform
2. Background of the Zomato Antitrust Probe
2.1 Genesis of the Complaint
The Zomato Antitrust Probe stems from a 2021 complaint by the NRAI. The association alleged that Zomato and Swiggy indulged in several unfair practices:
- Imposing steep commission rates
- Delaying payments to partner restaurants
- Offering unsustainable discounts
- Forcing use of in-house delivery networks
- Promoting affiliated cloud kitchens over third-party restaurants
This triggered a full-fledged investigation by the CCI, which found enough merit for a deeper inquiry in 2022.
2.2 Confidentiality Ring Controversy
In April 2022, the CCI introduced a ‘confidentiality ring’ concept to expedite complex probes. It allowed select representatives access to sensitive documents. Initially, NRAI was included in this ring. However, in October 2024, CCI excluded them following legal challenges by Zomato and Swiggy. Both platforms argued that such disclosure—even under legal safeguards—could harm their business interests irreparably.
3. Legal Battles and Court Hearings
3.1 Karnataka High Court’s Role
After CCI’s initial decision to permit partial access, Zomato and Swiggy moved the Karnataka HC in mid-2024. The court directed the CCI to revisit its decision. This led to NRAI’s exclusion from the ring.
3.2 Delhi High Court’s Recent Action
NRAI then approached the Delhi HC, seeking re-inclusion in the confidentiality ring. On April 22, the bench led by Justice Sachin Datta issued notices to both Zomato and the CCI. The court also combined this petition with a similar one against Swiggy.
The next hearing is scheduled for April 23, 2025.
4. CCI’s Interim Observations
Despite the legal friction, the CCI recently ruled that Zomato’s platform and delivery charges do not constitute abuse of dominant position. However, insiders suggest that internal reports submitted to the commission earlier did indicate possible violations.
This contradiction adds complexity to the Zomato Antitrust Probe and could shape regulatory reforms.
5. Market Dynamics and Industry Impact
Zomato currently leads the food delivery market with a 58% share, while Swiggy holds 42%. The antitrust developments are being closely watched by investors, startups, and legal experts.
Any landmark verdict could set new benchmarks in how India manages digital monopolies, data-sharing norms, and platform neutrality.
6. What Lies Ahead
With the next hearing on April 23, the Delhi HC’s upcoming stance could have wide-ranging consequences. The re-inclusion of NRAI in the confidentiality ring may reset the procedural fairness of the probe. Conversely, a denial could weaken NRAI’s case.
Either way, the Zomato Antitrust Probe has turned into a bellwether for India’s evolving competition laws in the digital era.
7. Learning for Startups and Entrepreneurs
- Transparency builds trust: Legal troubles often begin when platforms lack openness in business practices.
- Fair competition matters: Dominating a sector should not come at the cost of other stakeholders.
- Regulatory awareness is essential: Startups must understand laws like the Competition Act, 2002.
- Balancing innovation and compliance: While scale is key, ethical scaling ensures long-term sustainability.
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