Zomato tumbles as CCI orders probe for alleged unfair practices
Zomato is currently trading at Rs. 83.95, down by 2.25 points or 2.61% from its previous closing of Rs. 86.20 on the BSE.
The scrip opened at Rs. 82.75 and has touched a high and low of Rs. 85.10 and Rs. 82.15 respectively. So far 1022329 shares were traded on the counter.
The BSE group 'B' stock of face value Rs. 1 has touched a 52 week high of Rs. 169.10 on 16-Nov-2021 and a 52 week low of Rs. 75.55 on 16-Mar-2022.
Last one week high and low of the scrip stood at Rs. 88.40 and Rs. 78.50 respectively. The current market cap of the company is Rs. 66124.24 crore.
The Institutions and Non-Institutions holding in the company stood at 15.68% and 84.32% respectively.
Competition Commission of India (CCI) has ordered a detailed probe against Zomato for alleged unfair business practices with respect to their dealings with restaurant partners. The order has come on a complaint filed by the National Restaurant Association of India (NRAI).
The prima facie there exists a conflict of interest situation, warranting a detailed scrutiny into its impact on the overall competition between the restaurant partners (RPs) vis-à-vis the private brands or entities which the platforms may be incentivized to favour.
Besides, the price parity clauses mentioned in the agreements of Zomato appear to indicate wide restrictions where the RPs are not allowed to maintain lower prices or higher discounts on any of their own supply channel or on any other aggregator, so that the minimum price or maximum discounts can be maintained by the platform.
Zomato is an Indian multinational restaurant aggregator and food delivery company founded by Pankaj Chaddah and Deepinder Goyal in 2008. It provides information, menus and user-reviews of restaurants as well as food delivery options from partner restaurants in select cities.
