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CCI Dismisses Complaint Against Zomato Over Platform Fees and Pricing

The Competition Commission of India (CCI) has dismissed a complaint against Eternal Ltd. (formerly Zomato Ltd.) concerning its platform fees and pricing practices. The commission found no prima facie violation of competition law.

24 July 2026
CCI Dismisses Complaint Against Zomato Over Platform Fees and Pricing
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The Competition Commission of India (CCI) has dismissed a complaint lodged against Eternal Ltd., formerly known as Zomato Ltd., regarding its pricing structure, including platform fees and delivery charges. The commission found no prima facie violation of the Competition Act in its assessment.

In an order dated July 23, 2026, the CCI closed the case, stating that no initial evidence of contravention of Sections 3 or 4 of the Competition Act was found. The complainant's request for an immediate halt to platform fee collection was also rejected.

The complaint alleged that Zomato abused its dominant position by imposing unfair fees and forcing restaurants to inflate menu prices. The complainant cited a specific instance where the total cost of a dish through Zomato, including delivery and platform fees, was significantly higher than the price of the same dish purchased directly from the restaurant.

The CCI stated that the pricing differences are attributable to the distinct business models of online food delivery platforms, which involve additional services beyond the food itself. The commission noted that these platforms operate as multi-sided businesses, levying charges on both consumers for ordering and delivery, and on restaurants for listing and sales.

This ruling pertains specifically to competition law. India's consumer protection framework may still address issues such as potentially misleading pricing tactics, including "drip pricing," where additional charges are revealed later in the purchasing process.

Original source: medianama.com