-KH News Desk (editorial1@imaws.org)
In a significant victory for the Indian restaurant industry, Zomato has officially removed its controversial “Charges for Price Disparity” clause from its restaurant contracts. The decision, reported on April 23, 2026, follows years of sustained pushback from the National Restaurant Association of India (NRAI) and mounting pressure from the Competition Commission of India (CCI) regarding anti-competitive practices.
The now-deleted provision allowed Zomato to penalize restaurant partners if they offered lower prices to walk-in diners or on their own direct-delivery websites compared to the prices listed on the Zomato app.
Key Details of the Withdrawn Clause:
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Triple Penalties: Under the previous terms, Zomato legally held the right to levy a fine equal to three times the price difference per order if a disparity was found.
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Surveillance Tactics: The contract permitted Zomato to use “mystery shopping” (secretive restaurant visits) and monitor customer complaints to verify that outlets were not undercutting the app’s pricing.
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The “Unenforced” Defense: While Zomato sources claim the clause was rarely enforced in practice, its presence in formal agreements was viewed by the NRAI as a tool for intimidation that stripped businesses of their right to control their own product margins.
The Turning Point: Regulatory & Industry Pressure The move comes at a critical time for the food services market, projected to reach $153 billion by 2031. Legal experts noted that the clause bore a striking resemblance to those found in violation of competition laws in the travel sector (specifically the 2022 ruling against MakeMyTrip and GoIbibo). Furthermore, a non-public report from a 2024 antitrust investigation had already suggested that Zomato and Swiggy were in breach of competition rules through such parity arrangements.
Official Commentary: Sagar J. Daryani, President of the NRAI, stated: “It is our product and should be our pricing. We appreciate the assurance that price parity will no longer be enforced. This allows restaurants to pass on benefits directly to consumers who choose to order from us directly.”
