e-commerce

Zomato, CCI Get Delhi HC Notice Over NRAI’s Exclusion in Antitrust Probe

The HC reportedly issued directions while hearing a plea challenging the exclusion of the National Restaurant Association of India (NRAI) from the confidentiality ring as part of the investigation

Zomato, CCI Get Delhi HC Notice Over NRAI’s Exclusion in Antitrust Probe
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The Delhi High Court (HC) has issued a notice to Zomato and the Competition Commission of India (CCI) regarding an ongoing antitrust investigation into the food‑tech giant, Mint reported.

The HC reportedly issued directions while hearing a plea challenging the exclusion of the National Restaurant Association of India (NRAI) from the confidentiality ring as part of the investigation. The NRAI also allegedly requested the court to examine the company’s confidentiality claims.

Initially, the NRAI was part of the confidentiality ring, which grants designated individuals access to sensitive and confidential material during proceedings before the competition watchdog. In November last year, the NRAI filed a similar case against Swiggy concerning its exclusion from the confidentiality ring.

The confidentiality ring, formed in 2022, allows involved parties to share confidential information to ensure a fair defence. However, the NRAI, initially part of the ring, was removed by the CCI in October 2024.

The organisation stated that its exclusion hampers its ability to provide an effective response and has requested a judicial review of Zomato’s confidentiality claims.

The Hearing

During Monday’s hearing, Zomato’s lawyers reportedly argued for the exclusion of the NRAI from the confidentiality ring, asserting that the industry body included companies competing with the food‑tech giant.

Subsequently, the HC presided over by Justice Sachin Datta consolidated the NRAI’s complaint against Zomato with a similar lawsuit against Swiggy. The court had also issued a notice in the Swiggy case in November last year. The HC will now hear both cases together at its next session on April 23.

This development coincided with the CCI ruling that Zomato’s platform and delivery charges do not constitute an abuse of dominant position.

The Background

The ongoing legal dispute stems from a 2021 lawsuit filed by the NRAI accusing Zomato and Swiggy of anti‑competitive practices. These allegations include mandating the use of their delivery services, withholding consumer data from partner restaurants, imposing exorbitant fees through restrictive agreements and favouring their own or affiliated cloud kitchens.

In 2022, after finding a prima facie case, the CCI launched a comprehensive investigation. Following a year‑long probe, the CCI’s director‑general submitted a confidential report in October 2023, based on data from both platforms.

In April 2024, the CCI granted the NRAI limited access to its antitrust investigation findings through the confidentiality ring, a mechanism designed to balance transparency and commercial sensitivity during regulatory reviews. However, Zomato and Swiggy challenged this decision in the Karnataka High Court, arguing that disclosing sensitive information, even within a protected framework, could cause irreparable commercial harm.

In response to this challenge, the Karnataka High Court in June 2024 directed the CCI to reassess its stance. This resulted in the CCI’s decision in October 2024 to fully exclude the NRAI from the confidentiality ring, prompting it to escalate the matter to the Delhi High Court.

Earlier this year, the NRAI was also contemplating separate legal action against the platforms, intensifying the dispute between the restaurant industry and food‑delivery aggregators.

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