CCI says platform fees and delivery charges charged by Zomato not ‘abuse of dominance’
The Competition Commission of India ruled that Zomato's platform fees and delivery charges do not constitute an abuse of market dominance. The commission concluded these are legitimate service charges rather than anti-competitive practices.
Why it matters
This decision provides regulatory clarity for the gig economy and food delivery platforms regarding their pricing structures and relationships with restaurant partners.
The Competition Commission of India (CCI) has found that the platform fee, delivery charges and restaurant commissions collected by Zomato do not constitute an abuse of dominance and are not anti-competitive practices. They are charges for legitimate and differentiated services being provided, it said.
The order was in response to an application by one R. Suresh, who alleged that Eternal (previously called Zomato) was charging an inflated price for food on its food-delivery platform as a result of its platform fees, delivery charges, and the commission it charges restaurants.
According to Mr. Suresh, he paid ₹198 for a plate of ghee pongal when he ordered it on Zomato from a restaurant named Sree Ariya Bhavan. However, when he went to the restaurant himself, he was charged ₹105 for the same dish.
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