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Zomato Dismisses Claims of Antitrust Investigation by CCI, Labels Reports “Misleading”

By  |  November 11, 2024
Zomato

Indian food delivery giant Zomato has issued a statement refuting recent media reports suggesting that the company is under antitrust scrutiny by the Competition Commission of India (CCI). The company called these claims “misleading” and clarified that, while the CCI had indeed opened a preliminary probe in April 2022, no formal findings or orders have been issued against Zomato thus far, according to LiveMint.

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    In response to the speculation, Zomato clarified its stance, highlighting its commitment to full compliance with Indian competition laws. The company has been cooperative with the CCI investigation and is prepared to address any inquiries related to its business practices. According to LiveMint, Zomato reaffirmed that the April 2022 preliminary investigation, referred to as a “Prima Facie Order,” was only the beginning of a review process, led by the CCI’s Director General. Since then, there have been no additional rulings or directives issued by the CCI on the matter, Zomato explained.

    Related: India’s Food Delivery Giants Face Antitrust Allegations over Market Dominance

    The recent media reports claimed that both Zomato and rival food delivery platform Swiggy may have violated antitrust laws in India, a claim which Zomato’s officials have strongly denied. Zomato’s Company Secretary and Compliance Officer, Sandhya Sethia, clarified in a notice to the Bombay Stock Exchange (BSE) that the CCI’s concerns were primarily related to the company’s platform practices. These included allegations of preferential listing of restaurant partners and concerns over uniform pricing practices across different platforms. However, Zomato reassured its stakeholders that its operations are entirely consistent with the Competition Act, 2002, and do not impede market competition.

    “The aforementioned news article is misleading,” Sethia stated, emphasizing Zomato’s dedication to transparency and constructive engagement with regulatory bodies. She also reiterated that the company has not been involved in any “reportable events” that would mandate additional disclosure under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

    According to LiveMint, Zomato has expressed confidence in the legitimacy of its business practices and is committed to upholding competitive fairness in India’s rapidly growing food delivery industry. The company’s statement aims to reassure investors and consumers alike, stressing that Zomato’s practices do not constitute any anticompetitive behavior and that it remains fully compliant with all relevant laws and regulations.

    Source: LiveMint