Zomato issues statement on CCI probe
1 min read . Updated: 05 Apr 2022, 02:12 PM IST
Premium- Zomato said it will explain to the regulator why all of its practices are in compliance with competition laws do not have any adverse effect on competition in India
A day after India's antitrust body ordered a probe into the anti-competitive practices of food delivery platforms, Zomato said it will continue to work closely with CCI to assist them with their investigation.
Zomato further said it will explain to the regulator why all of its practices are in compliance with competition laws do not have any adverse effect on competition in India.
"We intend to promptly comply with any recommendations given to us by the Commission," Zomato said.
The Competition Commission of India (CCI) on Monday ordered a probe into allegations of anti-competitive practices against food delivery companies Zomato Ltd and Bundl Technologies Pvt. Ltd which runs the Swiggy app.
On Tuesday, Zomato shares were trading 3.07% lower in noon deals at ₹83.65 apiece on NSE.
This followed a complaint filed by the National Restaurant Association of India (NRAI) which charged the online platforms with levying unilaterally decided commissions on restaurants, leading to entry barriers for new players, bundling of food ordering and delivery services without an option for restaurants to use their own delivery persons and being non-transparent with restaurants about customer details, the CCI said in its order.
The allegations refer to Competition Act provisions that disallow agreements that cause appreciable adverse effect on market competition.
The CCI has asked its director general of investigation to complete the probe in 60 days.
The competition watchdog said it was of the view that there existed “a prima facie case with respect to some of the conduct of Zomato and Swiggy, which required an investigation by the director general" to determine whether it breached the competition law.
