SYNOPSIS: Karnataka High Court extended stay on CCI proceedings against Swiggy in antitrust probe, citing concerns over evidence handling, while broader scrutiny continues over alleged exclusive agreements and competition practices in the food delivery sector.
During Wednesday’s trading session, shares of India’s pioneering on-demand convenience platform with an extensive footprint in food delivery surged nearly 3 percent on BSE, after the Karnataka High Court extended interim relief in the Competition Commission of India (CCI) antitrust probe.
With a market cap of Rs. 80,463 crores, shares of Swiggy Limited are currently trading in the green at Rs. 291.5 on BSE, up by over 2 percent, compared to its previous closing price of Rs. 283.85. The stock has delivered negative returns of over 15 percent in the last one year, but has gained by around 7 percent in one month.
What’s the News:
According to recent media reports, the Karnataka High Court has extended interim relief in favour of Swiggy by continuing the stay on proceedings before the Competition Commission of India (CCI) in an ongoing antitrust investigation. The court also raised concerns regarding the use of third-party statements that have not been subjected to cross-examination.
While hearing the matter, Justice Sachin Shankar Magadum observed that the issue requires detailed consideration, particularly in light of the Supreme Court’s judgment in the CCI vs. Schott Glass India case. The court highlighted that statements not tested through cross-examination may lack evidentiary reliability and should not ordinarily be relied upon against a party.
The dispute arises from Swiggy’s challenge to the CCI’s decision denying it the opportunity to cross-examine third parties whose statements are part of the investigation. The CCI maintained that these statements were only part of a broader evidentiary assessment and not solely relied upon, and therefore, cross-examination was not necessary.
However, the High Court found merit in Swiggy’s arguments and concluded that a prima facie case exists, justifying interim protection. Accordingly, it directed that proceedings before the CCI remain stayed until the next hearing scheduled for 25th April.
The matter is currently being heard at a preliminary stage, with the court allowing the CCI to submit its objections. Records indicate that the interim relief, initially granted on 17th March, has been extended multiple times, including on 24th March and 9th April, and will remain in force until the upcoming hearing.
Swiggy had approached the court seeking to halt the ongoing investigation and to prevent the sharing of confidential information with industry bodies, citing concerns over procedural fairness and safeguards.
This case forms part of a broader regulatory scrutiny of food delivery platforms, where issues such as market dominance, data practices, and platform neutrality are under examination.
The CCI is currently reviewing findings from an investigation which alleged that Swiggy and Zomato may have engaged in anti-competitive practices, including exclusive arrangements with restaurant partners and preferential treatment to certain brands.
The investigation follows a complaint filed in 2022 by the National Restaurant Association of India (NRAI), which alleged that such platforms offered lower commission rates in exchange for exclusivity, with Swiggy reportedly assuring higher business volumes to exclusive partners.
Financials & More:
Swiggy Limited operates a platform that connects users and partner merchants (including restaurant merchants, grocery merchants and delivery partners) to facilitate the ordering and delivery of food, groceries, and household essentials; enables restaurant discovery, table reservations, and participation in curated events and experiences; and provides an advertising platform for partner merchants and brands to promote their offerings.
With an extensive footprint in food delivery, Swiggy Food collaborates with over 2.7 lakh restaurants across 720+ cities. Instamart, its quick commerce platform operating in 131 cities, delivers groceries and other essentials across 20+ categories.
The company reported a significant growth in revenue from operations, experiencing a year-on-year increase of around 54 percent, from Rs. 3,992 crores in Q3 FY25 to Rs. 6,148 crores in Q3 FY26. Meanwhile, its net losses widened by more than 33 percent YoY from Rs. 799 crores to Rs. 1,065 crores over the same period, indicating continued pressure on profitability.
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