38.6c New Delhi, India, Friday, March 29, 2024
Business

CCI Dismisses Complaint against Swiggy Alleging Unfair Prices Charged by the Company

By Harshil Jain      24 June, 2020 11:53 AM      0 Comments
CCI Swiggy Unfair Prices

The Competition Commission of India disposed of a complaint filed against the online food delivery giant Swiggy that alleged that the company charges unfair prices from its customers. It was filed by advocates Prachi Agrawal and Tushar Sharma under Section 19(1) (a) of the Competition Act, 2002 against Bundl Technologies Pvt. Ltd. (a.k.a. Swiggy) alleging a contravention of Section 4 of the Act.

Relying on the reports of various data intelligence platforms, the informants stated that Swiggy tops the market share, and its website also claims it to be the leading food ordering and delivery platform in India.

The complainants alleged that the rates charged by the company for its services are much higher than the rates offered by the respective restaurants in offline delivery mechanisms. According to the informants, Swiggy charges a commission on the total bill amount, which is inclusive of GST, from its partner restaurants. Also, it charges from its customers a delivery fee which ranges from Rs 20 to 100 and can be even more in times of high demand, special occasions, and rains and on midnight deliveries.

The informants also stated that the customers are unaware of the offline prices offered at the restaurant, and hence are rendered incapable of comparing the two. “The customers are blinded and made to believe that only delivery charges are applicable and are completely unaware of the inflated prices of the OP which are unreasonable and varyingly apply to various dishes,” the order read. In addition to this, the informants prayed to the Commission to impose an appropriate penalty on Swiggy for charging unreasonable and unfair prices from customers (which is in contravention of Section 4(2)(a) of the Act) and direct Swiggy to ‘discontinue such abuse of dominant position’.

Denying all allegations put up against it, Swiggy submitted that it only operates as an intermediary (as defined in Section 79 of the IT Act, 2000) and the prices displayed on the platform are directly uploaded by its partner restaurants, as the decision on pricing solely rests with the partners and Swiggy has no role (direct or indirect) to influence the prices on its platform.

It also averred that ‘when it receives complaints from buyers who find discrepancies between the prices listed on the platform and the partner’s menus, the same are escalated to the partners or action as Swiggy cannot control, alter or affect the prices of items listed on its platform.’

The Commission observed that the company has entered into a contractual agreement with its various restaurant partners that seeks them to maintain a uniform price of food items sold by such partners when dealing with them directly or through the online platform of Swiggy. “This indicates that allegations against Swiggy do not appear to be substantiated in the present case,” the order read.

The Commission observed that “it would be apposite for Swiggy to give sufficient disclosures on its platform that it is not involved in the fixation of price of the products/menus of the restaurants on its platform, so as to alley misgivings, if any, in the minds of any stakeholder including the consumers”.

The Commission held that it found no prima facie case of contravention of the provisions of Section 4 of the Act.

 

 



Share this article:



Leave a feedback about this
TRENDING NEWS

arvind-kejriwals-plea-for-interim-release-rejected-by-delhi-high-court
Trending Judiciary
Arvind Kejriwal's plea for interim release rejected by Delhi High Court [Read Order]

Delhi High Court rejects Arvind Kejriwal's plea for interim release in money laundering case related to liquor policy scam, pending ED's response.

28 March, 2024 10:50 AM
youtuber-strings-plea-against-youtube-accounts-suspension-andhra-pradesh-hc-issues-notice-to-centre-google
Trending Top Stories
BREAKING: Youtuber String’s plea against Youtube accounts suspension: Andhra Pradesh HC issues notice to Centre, Google

Andhra Pradesh High Court issues notice to the Centre and Google LLC on Youtube journalist String’s plea against suspension of its accounts by Google (which owns Youtube).

28 March, 2024 11:26 AM

TOP STORIES

delhi-liquor-scam-court-remands-arvind-kejriwal-to-ed-custody-till-march-28-read-remand-application
Trending Judiciary
Delhi liquor scam: Court remands Arvind Kejriwal to ED custody till March 28 [Read Order]

Delhi liquor scam: Arvind Kejriwal remanded to ED custody till March 28. Court grants agency permission for interrogation in liquor policy case.

23 March, 2024 11:53 AM
sc-dismisses-centres-plea-for-review-of-judgment-directing-ed-to-furnish-written-grounds-of-arrest-to-pmla-accused
Trending Judiciary
SC dismisses Centre’s plea for review of judgment directing ED to furnish written grounds of arrest to PMLA accused [Read Order]

Supreme Court dismisses Centre's plea, upholds judgment mandating Enforcement Directorate to provide written grounds of arrest in PMLA cases.

23 March, 2024 03:14 PM
kerala-hc-to-hear-lesbian-couples-plea-against-forced-conversion-therapy-on-april-9
Trending Judiciary
Kerala HC to hear lesbian couple’s plea against forced conversion therapy on April 9

Kerala HC will hear a lesbian couple’s plea highlighting that one of them was subjected to forced conversion therapy.

23 March, 2024 03:30 PM
how-can-people-be-compelled-to-vote-madras-hc-asks
Trending Judiciary
“How can people be compelled to vote? Madras HC asks

“How can people be compelled to vote?”, the Madras HC queried in a plea asking employers in Tamil Nadu to demand proof from employees of having voted on polling day.

23 March, 2024 05:04 PM

ADVERTISEMENT


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email