The Delhi High Court has issued notices to food delivery giant Zomato and the Competition Commission of India (CCI) amid an ongoing antitrust investigation.
The notices were prompted by a plea from the National Restaurant Association of India (NRAI), which contests its exclusion from a confidentiality ring integral to the probe.
The confidentiality ring was established in 2022 to protect sensitive information while allowing a fair defence among the parties involved.
Initially included, the NRAI found itself ousted by the CCI in October 2024.
The association claims that this exclusion undermines its ability to defend itself effectively and has called for a judicial review of Zomato's confidentiality claims.
In court, Zomato's counsel defended the NRAI's removal, stating that the association represents competing businesses.
Justice Sachin Datta, presiding over the case, has consolidated NRAI's plea with a similar case involving Swiggy, with the next hearing set for 23 April.
This court action coincides with a CCI ruling that found Zomato's platform and delivery fees did not amount to an abuse of a dominant market position.
This marks a development for Zomato, which has been under scrutiny for nearly two years.
The NRAI's original complaint accused foodtech platforms of anticompetitive practices, including deep discounting, bundled services, high commission rates, delayed payments, and imposing one-sided contractual terms on restaurants.
In April 2024, the NRAI was granted limited access to the CCI's investigation findings under the confidentiality ring.
However, Zomato and Swiggy contested this at the Karnataka High Court, citing potential "irreparable commercial harm" from the disclosure of sensitive information.
The court's decision in June 2024 led the CCI to reassess and ultimately exclude the NRAI from the confidentiality ring in October 2024, prompting the association to seek redress at the Delhi High Court.
Earlier this year, the NRAI had also contemplated separate legal actions against the platforms, highlighting the growing tensions between the restaurant industry and food delivery services.
