Food delivery platform Swiggy has filed a petition with the Karnataka High Court challenging the Competition Commission of India’s (CCI) April 24 decision to allow the National Restaurant Association of India (NRAI) access to confidential information about the app [Swiggy Limited v. Competition Commission of India and others].
Swiggy had previously shared this confidential information with the CCI’s Director General (Investigation) as part of a probe into NRAI’s allegations that Swiggy and Zomato were engaging in anti-competitive practices.
In its petition, Swiggy argued that the CCI’s decision to let NRAI access this highly sensitive business information was arbitrary, unreasoned, contrary to the Competition Act, and would cause irreparable harm to Swiggy.
Justice MGS Kamal briefly heard the matter on Tuesday (May 21). He questioned whether the Karnataka High Court had jurisdiction to hear the plea since the CCI’s case was handled in Delhi.
Senior Advocate Sajan Poovayya, representing Swiggy, argued that as the CCI is a national body, the Karnataka High Court also has jurisdiction. Swiggy’s petition noted that its registered office is in Bengaluru, it received communications from the DG’s office in Bengaluru, and thus, part of the cause of action arose in Bengaluru.
The matter is scheduled for further hearing on the jurisdiction question on May 23 (Thursday) at 2:30 PM.
Additional Solicitor General N Venkataraman accepted notice on behalf of the CCI. Swiggy’s counsel will serve notice to the other respondents, NRAI and Zomato.
The dispute began with a 2021 complaint by NRAI, which represents restaurants and cloud kitchens partnering with Swiggy and Zomato. NRAI alleged that Swiggy and Zomato, as dominant market players, engaged in various anti-competitive practices such as forcing restaurants to use their delivery services, masking customer data from restaurant partners, creating conflicts of interest by listing their own cloud kitchens, imposing unfair contracts, and charging high commission rates.
In 2022, the CCI found a prima facie case against Swiggy and Zomato and ordered an investigation. Swiggy provided highly confidential information to the DG from September 2022 to October 2023. The DG concluded its probe in March.
Swiggy and Zomato requested access to the confidential investigation report to respond effectively. NRAI also sought access to this report.
On April 24, the CCI granted this request, allowing NRAI representatives to access the confidential information under the condition they not share it and destroy it after the proceedings. Swiggy is now challenging this directive in the High Court.
Swiggy contends that giving NRAI access to its confidential information would breach CCI practices and cause irreparable damage, as it involves trade secrets and sensitive business data. Swiggy argues that this disclosure violates the CCI’s obligation to protect confidential information under Section 57 of the Competition Act, 2002, and Regulation 35 of the Competition Commission of India (General) Regulations, 2009. Swiggy fears that NRAI might share this information with third parties, impacting Swiggy’s business activities.
Swiggy has asked the High Court to set aside the CCI’s April 24 order and, if the information has already been provided, to instruct NRAI to destroy the confidential records.
Swiggy’s petition was filed by advocates Anind Thomas, Dharma Tej Koneru, Anandi Kamani, Prashasti Singh, Radhika V, Gautham R, Vinudeep R, Aadith Sridhar, Abhay Shetty, and Asiri Raj of AZB & Partners.
