2024-11-11 07:36:02 :
Zomato has dismissed reports of a recent antitrust probe into its business practices by the Competition Commission of India (CCI), calling the claims “misleading”. In a statement issued by Zomato on November 10 It was clarified that although the CCI had initiated a preliminary investigation in April 2022, no conclusive findings or orders have been issued against it yet. Zomato stressed its compliance with Indian competition laws and reiterated its commitment to support the investigation and resolve any queries.
Zomato shares ended lower, down 2.37% $249.10, November 8, 2024, BSE. The company’s market capitalization is $2,20,113.28 crore, according to BSE data.
media reports
In response to recent media reports that Zomato and Swiggy violated antitrust laws, Zomato Limited has come out to strongly refute. The company clarified that the investigation triggered by the initial CCI order on April 4, 2022, has not yet led to any formal conclusion or adverse findings against the company. Zomato disclosed this in a notice to BSE, stressing that the CCI has issued no further orders since the investigation began.
Zomato’s Company Secretary and Compliance Officer Sandhya Sethia spoke about the matter and said that the initial “prima facie order” in April 2022 led to the direction of the CCI Director General to conduct an investigation. CCI has previously outlined its concerns, particularly regarding Zomato platform practices such as listing preferences of restaurant partners and consistency in pricing across platforms. Zomato, however, assured stakeholders that its practices are fully compliant with the Competition Act, 2002 and will not harm competition in the market.
“The above-mentioned news article is misleading,” Sethia said, stressing that Zomato has been transparent in its dealings and continues to engage constructively with the commission. The company stressed that “there are no further reportable events” requiring additional regulatory disclosures under the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015.
Zomato assured stakeholders that it is committed to cooperating with the CCI and addressing any recommendations that may arise from the investigation.
This clarification comes in the wake of recent buzz in the industry over claims that Zomato and Swiggy may be involved in unfair market practices. While preliminary investigations have raised questions about practices such as offer listings and pricing parity, Zomato maintains that these measures are aimed at delivering customer satisfaction without compromising competitive standards.
The CCI investigation is currently ongoing and Zomato’s public statements reflect its proactive approach to regulatory scrutiny.
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