Karnataka HC Extends Interim Protection For Swiggy Against CCI Probe

Food delivery major Swiggy has received another interim relief from the Karnataka High Court after it extended the stay on proceedings in the ongoing antitrust probe by the Competition Commission of India (CCI) till the next hearing on April 25. 

The HC, hearing Swiggy’s petition, flagged procedural concerns over reliance on third-party statements in the CCI investigation that have not been subjected to cross-examination, Business Standard reported. 

Justice Sachin Shankar Magadum cited recent Supreme Court precedent in CCI vs Schott Glass India, underscoring that untested third-party evidence should not ordinarily be used as the basis for adverse findings. 

Swiggy had approached the court after the CCI refused to allow cross-examination of third parties whose statements were included in the case file, arguing this compromised procedural safeguards and the right to a fair hearing.

The Karnataka HC found that Swiggy had established a prima facie case and granted continued interim protection. The interim order has been extended repeatedly after first being granted on March 17 and continued in subsequent hearings, the report added. 

Earlier, Swiggy moved the Karnataka HC to seek relief from the competition watchdog’s probe against it and from sharing confidential information with industry bodies, arguing that procedural safeguards were being compromised.

The CCI first initiated a probe against foodtech majors Swiggy and Zomato in 2022 after the National Restaurant Association of India (NRAI) filed a complaint against the platforms, accusing them of indulging in unfair practices. The probe in the larger food delivery ecosystem has included issues of market dominance, data practices and platform neutrality. 

In November 2024, the regulator found that Swiggy and Zomato breached competition laws by favouring select restaurants through exclusive listing partnerships. It alleged that Swiggy promised business growth to select players if they listed exclusively on the platform.

The restaurant body in its initial complaint also accused Swiggy and Zomato of indulging in deep discounting, which hurt the interests of local restaurants and violated platform neutrality. Its biggest contention was that both players took away almost 25-35% of each order value as commissions in FY21. 

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