Lok Sabha Question No. 2669 (UNSTARRED), answered on 2025-03-17
Subject: Monopoly of Food Delivery Eco-system
Ministry: CORPORATE AFFAIRS
Asked by: Shri Raja Ram Singh

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS LOK SABHA

## UNSTARRED QUESTION NO. 2669

ANSWERED ON MONDAY, MARCH 17, 2025/ PHALGUNA 26, 1946 (SAKA)

## Monopoly of Food Delivery Eco-system

## QUESTION

## 2669. Shri Raja Ram Singh:

Will the Minister of CORPORATE AFFAIRS

## be pleased to state:

- (a) whether the Government has taken any cognizance of the news item titled "NRAI to sue Zomato and Swiggy for attempting the monopolise the food delivery market" appeared in the Times of India dated 9 th  January, 2025 and if so, the details thereof;
- (b) whether the Government has taken any action in the matter;
- (c) if so, the details thereof and if not, the reasons therefor;
- (d) whether the Government intends to introduce regulatory measures to control such practices and if so, the details thereof;
- (e) whether the Government considered the dangers this data collection provides for competitiveness of business and partners listed on these platforms;
- (f) if so, the action taken by the Government to protect the data collected by these gig platform apps; and
- (g) whether the Government intends to take action against the companies like Swiggy and  Zomato  which  have  adopted  anti-competitive  practices and  violated the regulations of Competition Act, 2002, if so, the details thereof and if not, the reasons therefor?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF CORPORATE AFFAIRS AND MINISTER OF STATE IN THE MINISTRY OF ROAD TRANSPORT AND HIGHWAYS.

## (SHRI HARSH MALHOTRA)

(a)to (c): As per the provisions of Section 19 of the Competition Act, 2002,(the 'Act') the Competition Commission  of India (CCI) may  inquire into any alleged contravention of Section 3 (prohibition of anti-competitive agreements) or Section4 (prohibition of abuse of dominant position) either on its own motion or on-

- (i) receipt of any information, in such manner and accompanied by such fee as may be determined by regulations, from any person, consumer or their association or trade association; or
- (ii) a reference made to it by the Central Government or a State Government or a statutory authority.

The  CCI  examines  information(s)  received  alleging  anti-competitive  practices  or abuse of dominance under the Act and wherever a prima facie case is found, the matter is investigated. Where after inquiry, the CCI finds that any agreement referred to in Section 3 or an action of an enterprise in a dominant position, is in contravention of Section 3 or Section 4 as the case may be, it may pass orders including imposition of monetary penalty in terms of the provision of Section 27 of the Act.

An information with regard to Quick-Commerce has been filed before Competition Commission of India (CCI) by an individual regarding Bundl Technologies Pvt. Ltd, Blink Commerce Pvt. Ltd and Zepto Marketplace Pvt. Ltd for their alleged involvement in Anti-Competitive activities.

(d): The CCI takes action to prevent practices having adverse effect on competition, to promote and sustain competition in markets, to protect the interests of consumers and to ensure freedom of trade carried on by other participants in markets under the various provisions of the Competition Act, 2002.

The Department of Consumer Affairs has notified the Consumer Protection (Ecommerce) Rules, 2020 under the provisions of the Consumer Protection Act, 2019 to safeguard consumers from unfair trade practices in e-commerce. These rules, interalia, outline the responsibilities of e-commerce entities and specify the liabilities of marketplace and inventory e-commerce entities, including provisions for customer grievance redressal.

In terms of the provisions of these rules, no e-commerce entity shall

(i) manipulate the price of the goods or services offered on its platform in such a  manner  as  to  gain  unreasonable  profit  by  imposing  on  consumers  any unjustified price having regard to the prevailing market conditions, the essential nature of the good or service, any extraordinary circumstances under which the good or service is offered, and any other relevant consideration in determining whether the price charged is justified.

(ii)  discriminate between the consumers of the same class or make any arbitrary classification of consumers affecting their rights under the Act.

These rules also provide that no e-commerce entity shall adopt any unfair trade practice, whether in the course of business on its platform or otherwise.

In  order  to  strengthen  consumer  protection,  the  Central  Consumer  Protection Authority  (CCPA)  issued  the  'Guidelines  for  Prevention  and  Regulation  of  Dark Patterns, 2023' on 30th November 2023. These guidelines address and regulate 13 specific dark patterns identified in the e-commerce sector, aiming to prevent deceptive practices that mislead consumers.

(e) & (f): The Digital Personal Data Protection Act, 2023 (DPDP Act) casts obligations on Data Fiduciaries to protect the digital personal data in their possession or under their control, including in respect of any processing undertaken by them or on their behalf by a data processor, by taking reasonable security safeguards and implementing appropriate technical and organizational measures to ensure effective observance of the provisions of the Act. The DPDP Act cast additional obligations like conducting impact assessments, periodic audits and appointment of data protection officers on Significant Data Fiduciaries only. The DPDP Act holds the data fiduciaries accountable for any personal data breach or any other contravention of this law. The accountability  of  the  Data  Fiduciaries  is  ensured  through  the  adjudication  of  data breaches  and  breaches  of  the  provisions  of  the  Act  and  imposition  of  financial penalties by the Data Protection Board.

(g): An information with regard to Quick-Commerce has been filed before Competition Commission of India (CCI) by an individual regarding Bundl Technologies Pvt. Ltd, Blink Commerce Pvt. Ltd and Zepto Marketplace Pvt. Ltd for their alleged involvement in Anti-Competitive activities.

*****