Why in News?
The Competition Commission of India (CCI) ruled that Zomato’s platform fee, delivery charges, and commissions do not amount to abuse of dominant position or anti-competitive conduct.
Key Highlights
- CCI dismissed a consumer complaint against Zomato/Eternal over platform fees and price differences.
- The higher online price was attributed to delivery charges, platform fee, and GST.
- Restaurants stated that Zomato charges around 33% commission, leading some to increase online menu prices.
- CCI held that online food delivery and in-person dining are distinct markets, making price differences commercially justifiable.
- Mere price variation does not constitute an abuse of dominant position under competition law.
Abuse of Dominant Position (Competition Act, 2002)
- Dominance itself is not prohibited; only its abuse is.
- Examples include:
- Imposing unfair or discriminatory prices.
- Limiting production or technical development.
- Denying market access.
- Leveraging dominance in one market to enter another.
Competition Commission of India (CCI)
- Statutory body established under the Competition Act, 2002.
- Came into effect in 2009.
- Objective: Prevent anti-competitive practices, prohibit abuse of dominant position, regulate combinations (mergers and acquisitions), and promote fair competition.
PYQ (2023, GS2, 10 Marks) Discuss the role of the Competition Commission of India in containing the abuse of dominant position by the Multi-National Corporations in India. Refer to the recent decisions.
[2022] With reference to foreign-owned e-commerce firms operating in India, which of the following statements is/are correct?
1. They can sell their own goods in addition to offering their platforms as market-places.
2. The degree to which they can own big sellers on their platforms is limited.
Select the correct answer using the code given below:
[A] 1 only
[B] 2 only
[C] Both 1 and 2
[D] Neither 1 nor 2
[D] 1, 2, 3 and 4