Karnataka High Court asks CCI to decide Swiggy's objections to confidential data sharing

The Karnataka High Court on Wednesday directed the Competition Commission of India (CCI) to take a fresh call on whether confidential data concerning Swiggy should be shared with a restaurant association, amid the examination of allegedly anti-competitive practices by Swiggy and Zomato [Swiggy Limited v. Competition Commission of India and ors]..Justice SR Krishna Kumar asked the CCI to decide on this aspect after hearing Swiggy's objections and submissions by the restaurant association, namely the National Restaurant Association of India (NRAI). The Court directed the CCI to decide on the matter expeditiously, although it did not fix any specific time frame. Justice Kumar also clarified that he has not expressed any opinion on the rival contentions made before the High Court by the CCI, Swiggy and the NRAI. The order passed today must not be treated as a precedent in any other case, the High Court underscored..The matter stemmed from a probe initiated by the CCI on a complaint filed by the NRAI in 2021, which alleged that food delivery apps Swiggy and Zomato were indulging in anti-competitive practices. The Director General (Investigation) of the CCI had earlier conducted a probe into these allegations. The DG's findings were compiled into a report that contained sensitive and confidential business information submitted by Swiggy and Zomato. Therefore, the DG submitted two versions of its report, a redacted version and an unredacted version. The unredacted version of the report retained the confidential information concerning Swiggy and Zomato.The CCI later created a confidential ring of persons who would have access to the unredacted version of the DG's report. However, by an order passed on April 24 this year, the CCI allowed the NRAI's representatives also to become part of this confidential ring. Swiggy objected to this move, claiming that the CCI's April 24 order was passed without hearing Swiggy. It, therefore, filed a petition before the Karnataka High Court to set aside the CCI's decision. Swiggy argued that the CCI order was bereft of any reasons to support its decision to allow NRAI's representatives access to Swiggy's confidential data.During the last hearing of the matter, Justice Krishna Kumar had suggested that the CCI could reconsider the matter after hearing Swiggy, since the primary grievance was that Swiggy's objections were not heard. .After the counsel for all rival sides agreed to the suggestion to have the CCI reconsider the matter, the dispute was today sent back to the commission. The Court today also took note of the concern that if a timeline is fixed for the CCI's fresh decision, it may risk facing contempt of court proceedings in case a decision is not arrived at within the deadline. Representing Swiggy, Senior Advocate Sajan Poovayya said that this concern could be addressed if the Court orders that a decision be made at the earliest.He also assured the Court that Swiggy would not seek any unnecessary adjournments before the CCI. Accordingly, the Court directed CCI to decide on the matter "as expeditiously as possible" in accordance with law, after hearing the NRAI and the objections by Swiggy. .Apart from Poovayya, Senior Advocate Dhyan Chinnappa also appeared for Swiggy before the High Court. The CCI was represented by Additional Solicitor General N Venkataraman and advocate Nayanatara BG. The NRAI was represented by advocate Abir Roy. Order copy awaited.