Swiggy Challenges CCI Order in Karnataka High Court

Swiggy has filed a petition with the Karnataka High Court challenging the Competition Commission of India’s (CCI) decision to grant the National Restaurant Association of India (NRAI) access to confidential information about the food delivery app.

This information was provided to the CCI’s Director General during an investigation into allegations by NRAI that Swiggy and Zomato engaged in anti-competitive practices. Swiggy argues that the CCI’s decision is arbitrary, unreasoned, and contrary to the Competition Act, potentially causing irreparable harm to the company. The case is Swiggy Limited v. Competition Commission of India and ors.

Justice MGS Kamal briefly heard the case on May 21, questioning if the Karnataka High Court had jurisdiction since the CCI is based in Delhi. Senior Advocate Sajan Poovayya, representing Swiggy, argued that as a national body, the CCI falls under the High Court’s jurisdiction. Swiggy’s petition noted its registered office in Bengaluru and communication from the DG’s office in Bengaluru, thus partially establishing the cause of action there. The court will further discuss jurisdiction on May 23 at 2:30 PM.

Additional Solicitor General N Venkataraman accepted notice on behalf of the CCI. Swiggy’s counsel agreed to notify the other respondents, NRAI and Zomato. The dispute began with a 2021 complaint by NRAI, representing restaurants and cloud kitchens partnered with Swiggy and Zomato. NRAI argued that due to their market power, these platforms were unavoidable for restaurants and accused them of anti-competitive practices such as forcing bundled services, data masking, creating conflicts of interest with their cloud kitchens, imposing one-sided contracts, and charging high commission rates that reduced restaurant revenue and increased expenses.

In 2022, the CCI found a prima facie case against Swiggy and Zomato, prompting an investigation by the DG. Swiggy submitted confidential information during the probe, which concluded in March 2023. Both Swiggy and Zomato requested access to the DG’s confidential findings to respond adequately. NRAI also sought access to this information, and on April 24, the CCI allowed it, requiring NRAI to keep the information confidential and destroy it after the proceedings.

Swiggy has challenged this order in the High Court, arguing that sharing its trade secrets with NRAI violates CCI’s confidentiality obligations and could cause irreparable harm to its business. Swiggy has requested the High Court to overturn the CCI’s order and, if the information has been shared, to instruct NRAI to destroy it.