Zomato share price falls 5% after CCI orders probe
Published On: Tuesday, April 5, 2022 | By: Team KnowMyStock
Zomato's share price fell as much as 4.7 percent to Rs 82.15 apiece on BSE in intraday deals on Tuesday, after the Competition Commission of India (CCI) initiated an investigation into its and Swiggy’s business practices. Being, prima facie, satisfied with some allegations made by the National Restaurant Association of India ("NRAI"), the CCI had directed the DG to carry out a detailed investigation as per Section 26(1) of the Act and submit a report within 60 days from receipt of order.“The Hon’ble Commission has mentioned that it has prima facie not found concerns with respect to our independence on levy of commissions or alleged bundling of services, while it would want to investigate aspects such as a preferential listing of restaurant partners and pricing parity across platforms, etc,” Zomato said in a BSE filing.
“We will continue to work closely with the Hon'ble Commission to assist them with their investigation and explain to the regulator why all of our practices are in compliance with competition laws and do not have any adverse effect on competition in India,” Zomato said in a regulatory filing.
“We intend to promptly comply with any recommendations given to us by the Hon'ble Commission,” it added.
Tags: ZOMATO CCI 5 percent fall
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