Are Zomato's delivery, platform fees unfair? competition regulator says 'no'
What's the story
The Competition Commission of India (CCI) has found that Zomato's delivery fee, food fee, and platform fee aren't discriminatory or unfair.
The decision was made by a CCI bench chaired by Ravneet Kaur and members Anil Aggarwal, Sweta Kakkad, and Deepak Anurag.
The order came after one Lalit Wadher filed a complaint against Zomato for alleged anti-competitive practices and abuse of its dominant market position.
Complaint details
Zomato's business model under scrutiny
Wadher, a senior citizen, alleged that Zomato works against the interest of consumers by charging 20-30% higher prices than what is at the restaurant.
He alleged that its affiliated restaurants don't display prices on food items after delivery, so consumers are unaware of their overcharges.
He also complained about Zomato's platform fee increase from ₹5 to ₹6 without any noticeable improvement in app services for consumers.
Additional claims
Allegations of monopolistic practices and customer service failures
Wadher further alleged that Zomato was working in duopoly with another similar company, resulting in excessive and monopolistic charges for consumers.
He also slammed Zomato's customer care, saying that when complaints arise about food orders, the company's customer care simply connects callers to the restaurant without taking any responsibility.
These allegations formed the basis of his complaint against Zomato at the CCI.
Commission's ruling
CCI finds no evidence of Zomato's market abuse
After examining the allegations, the CCI found that the charges do not appear to be unfair and discriminatory in nature.
It stated that the issue of food edibility, as well as the failure to disclose food prices on packaging, does not create any competitive concerns.
It also pointed out consumers can always opt out of paying tips and donations.