NRAI to Sue Zomato and Swiggy for Alleged Market Monopolization

The National Restaurant Association of India (NRAI) has announced plans to file a legal complaint against Zomato and Swiggy, accusing the food delivery giants of attempting to monopolize the market. This move comes in response to the companies' recent forays into private labeling and quick commerce food delivery through platforms like Blinkit Bistro and Swiggy Snacc.

NRAI president Sagar Daryani expressed concerns over the breach of marketplace neutrality, stating, "What we are absolutely not okay with is Zomato and Swiggy doing private labelling and selling food by themselves." The association argues that these actions create an unfair advantage in the food delivery ecosystem, potentially violating the Copyright Act and other legal frameworks.

Concerns Over Restaurant Survival and Fair Competition

The NRAI has raised alarms about the potential cannibalization of restaurant businesses that rely on Zomato and Swiggy's platforms. By leveraging their dominant positions and access to restaurant data, the association fears that these companies are undermining fair competition and threatening the survival of thousands of restaurants across India.

In response, the NRAI is prepared to take all available legal remedies to protect the interests of the restaurant industry, including filing complaints with relevant regulatory authorities and initiating legal action to prevent further monopolization of the market by Zomato and Swiggy.

As of now, Zomato and Swiggy have not commented on the allegations, with queries sent to both companies remaining unanswered.