The Competition Commission of India (CCI) has dismissed allegations that Eternal Ltd, the parent company of Zomato, abused its dominant position by charging platform fees and delivery charges, providing regulatory clarity for one of the company’s key revenue models.

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The order comes at a time when India’s online food delivery industry is increasingly focused on improving profitability as customer growth moderates and investors push internet companies to strengthen their financial performance.

CCI rejects allegations over pricing model

The complaint argued that customers often pay more when ordering through Zomato because of platform fees, delivery charges and higher menu prices. It also alleged that restaurants were compelled to increase prices on the platform to offset commissions charged by the company.

After examining the matter, the CCI declined to order a detailed investigation, stating that there was no prima facie evidence of abuse of dominance.

According to the regulator, online food delivery is a distinct digital service that combines online ordering, digital payments, customer support and doorstep delivery. As a result, comparing prices on food delivery platforms directly with dine-in or takeaway prices does not accurately reflect the additional services offered through these platforms.

Platform fees have become an important revenue source

Food delivery companies have increasingly relied on multiple income streams—including platform fees, delivery charges, restaurant commissions and advertising—to improve margins.

Zomato introduced a ₹2 platform fee in 2023 and has gradually increased it in various markets, with charges now reaching up to ₹10 per order depending on demand and location.

While the fee may appear modest for individual customers, it generates meaningful revenue when applied across millions of orders processed each month.

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Industry continues to expand despite profitability focus

India’s online food delivery market is currently estimated to be worth $9-10 billion, with several industry estimates suggesting it could exceed $20 billion over the coming years.

The country now records more than three million online food orders daily, although industry analysts believe there remains significant room for expansion compared with larger global markets.

For Eternal Ltd, food delivery continues to be a major contributor to revenue even as its quick commerce business, Blinkit, has expanded rapidly.

The company reported that its food delivery segment generated a gross order value (GOV) exceeding ₹10,000 crore during the quarter ended March 2026. Platform fees remain an important component of the business model, helping support margins while funding continued investments and operational expansion.

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Ruling offers wider clarity for the sector

The CCI’s decision is expected to provide reassurance beyond Zomato, as similar pricing structures are widely used across the industry.

Competitors such as Swiggy also levy platform and delivery charges, while international food delivery companies including Uber Eats, DoorDash and Deliveroo use comparable fee-based models alongside restaurant commissions and service charges.

Industry observers say the ruling suggests that charging platform or delivery fees, by itself, does not constitute anti-competitive conduct under India’s competition law.

Regulatory scrutiny continues on other issues

Although the latest order removes uncertainty surrounding platform fees, it does not conclude regulatory scrutiny of the food delivery sector.

According to the CCI, broader issues—including marketplace practices, relationships with restaurant partners, algorithmic fairness and competition within the digital marketplace—remain subject to separate examination.

The latest decision is limited to questions surrounding platform fees, delivery charges and comparisons between online and offline pricing.

The order also reflects the regulator’s recognition that customers using food delivery platforms pay not only for meals but also for the convenience of digital ordering, payment systems and last-mile delivery services. As competition intensifies and companies seek sustainable growth, the ruling provides greater regulatory certainty for fee-based business models in India’s evolving food delivery market.

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FAQ

Why did the CCI rule in Zomato’s favor?

The CCI found no prima facie evidence that Zomato abused a dominant market position through its platform fees or delivery charges and therefore declined to order a detailed investigation.

What are Zomato’s platform fees?

Platform fees are additional charges collected on food orders to help cover operational costs and support the company’s business model. The fee has increased over time and can reach up to ₹10 per order in some markets.

Does the ruling affect other food delivery companies?

The decision could provide regulatory clarity for other food delivery platforms that use similar pricing structures, although it applies specifically to the issues examined in this case.

Is the food delivery sector still under regulatory scrutiny?

Yes. The CCI noted that other issues, including marketplace practices, restaurant partnerships and competition-related concerns, continue to be examined separately.

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