Karnataka High Court suggests CCI to reexamine data sharing directives against Swiggy

The crux of the matter revolves around a contentious order that mandates Swiggy to share confidential information with the National Restaurant Association of India

By  Storyboard18Jun 20, 2024 10:16 AM
Karnataka High Court suggests CCI to reexamine data sharing directives against Swiggy
In 2021, NRAI accused Swiggy and Zomago of unfair practices

The Karnataka High Court has suggested the Competition Commission of India (CCI), a statutory body within the Ministry of Corporate Affairs, to reexamine its directive to share confidential data about food delivery platform Swiggy with the restaurant association, Bar & Bench reported.

The High Court has also asked the competition watchdog whether it would be open to hearing Swiggy and another stakeholder on the matter before passing the final order.

According to Bar & Bench, Justice SR Krishna Kumar observed that the talks between CCI and Swiggy would save a lot of time for all parties concerned

The crux of the matter revolves around a contentious order that mandates Swiggy to share confidential information with the National Restaurant Association of India (NRAI).

In 2021, NRAI accused Swiggy and Zomago of unfair practices such as forcing restaurants to use delivery services, hiding customer data, and unfair contracts with high commission fees.

Following this the CCI allowed the NRAI to become part of a "confidential ring" that would have access to the unredacted version of a report by the Director General of the CCI. The report contained sensitive business information about Swiggy and Zomato.

Swiggy challenged the CCI's order to allow NRAI access to its business information.

The High Court heard the rejoinder arguments by Swiggy on Wednesday after the CCI and the NRAI concluded submissions in earlier hearings.

However, Justice Krishna Kumar said it would save a lot of time if the dispute were to be sent back to the CCI to settle.

CCI counsel advocate has urged the court to grant some time. The court has listed the matter for further consideration on June 26.

First Published on Jun 20, 2024 10:15 AM

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