Collective Dominance In Multi-Sided Platforms: A Legal And Economic Analysis Of India's Food Delivery Sector
- Indian Journal of Law and Legal Research
- Mar 15
- 2 min read
Reshma G, LLM (Corporate and Commercial Law), School of Law, Christ (Deemed to be) University, Bengaluru, India
Dr. PKVS. Rama Rao, Associate Professor, School of Law, Christ (Deemed to be University), Bengaluru, India
ABSTRACT
The research paper explores the issue of collective dominance in the Indian digital food delivery business, especially with reference to the duopoly created by Swiggy and Zomato. These companies collectively have a market share of at least 90%, evoking serious issues regarding anti-competitive behaviour. The National Restaurant Association of India (NRAI) has complained to the Competition Commission of India (CCI) that Swiggy and Zomato abuse their dominance by adopting tactics like price parity clauses and exclusivity agreements, which discourage market competition and limit the prospects for small restaurants.
The current CCI probe is critical for India's competition law regime to mature. The article contends that the identification of collective dominance under Section 4 of the Competition Act, 2002 is important in solving the issues of duopolistic markets. It also highlights the importance of defining multi-sided markets, where platforms engage with multiple parties, such as consumers and suppliers. Through an examination of the workings of digital markets and oligopolistic dominance, the paper formulates policy suggestions for enhancing India's competition law to provide opportunities for equal competition and consumer choice in the burgeoning online food delivery market.
The analysis of the paper is against the context of India's growing digital economy, where regulatory issues are becoming more complicated. It emphasizes the need to update legal structures to deal with new issues in digital markets so that they are competitive and inclusive for all stakeholders. Finally, the study seeks to contribute to a better understanding of collective dominance and its relevance to competition policy in India.
Keywords: Collective, Dominance, Market, Swiggy, Zomato, CCI
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