Antitrust Probe: Delhi HC Seeks Clarity On NRAI’s Exclusion From Confidentiality Ring
Companies Consumer Food

Antitrust Probe: Delhi HC Seeks Clarity On NRAI’s Exclusion From Confidentiality Ring

Originally introduced in 2022, the confidentiality ring was designed to grant limited access to sensitive information among involved parties to ensure a fair legal process

Seeking clarity on why the National Restaurant Association of India (NRAI) was excluded from a confidentiality ring in an ongoing antitrust probe against food aggregators, the Delhi High Court (HC) has issued notices to both Zomato and the Competition Commission of India (CCI), as per the reports.

Originally introduced in 2022, the confidentiality ring was designed to grant limited access to sensitive information among involved parties to ensure a fair legal process. However, the CCI removed NRAI from this ring in October 2024. Arguing that this exclusion impairs its ability to defend itself effectively, the NRAI has approached the court seeking a review of Zomato’s confidentiality claims.

Zomato’s legal team contended that NRAI represents rival businesses and, therefore, should not have access to confidential data. Justice Sachin Datta, presiding over the matter, has now combined NRAI’s petition with a similar case concerning Swiggy. Both matters are scheduled for a hearing on 23 April, as per the media reports.

The court action coincided with a CCI ruling that cleared Zomato of abusing its dominant position in relation to platform and delivery fees, offering a reprieve after nearly two years of investigation.

The original complaint, filed by the NRAI, accused top food aggregators of anti-competitive conduct, including deep discounting, service bundling, high commissions, delayed payments and imposing one-sided contractual terms on restaurant partners.

Back in April 2024, the CCI granted the NRAI limited access to investigation findings via the confidentiality ring to balance transparency with commercial sensitivity. However, the reports added that Zomato and Swiggy challenged this provision in the Karnataka High Court, warning that even controlled disclosure could result in “irreparable commercial harm.”

In June 2024, the Karnataka High Court asked the CCI to review its decision. This ultimately led to NRAI’s exclusion from the confidentiality ring in October 2024, prompting the association to seek relief from the Delhi High Court.

Earlier this year, the NRAI had also signalled the possibility of separate legal proceedings against the platforms, escalating the ongoing standoff between the restaurant industry and India’s leading food delivery firms.

Leave a Reply

Discover more from BW Retail World

Subscribe now to keep reading and get access to the full archive.

Continue reading