Edenred SA (EPA:EDEN) shares fell more than 12% after Italy’s competition authority opened an investigation into the group’s local unit over suspected abuse of a dominant position in the meal voucher market.

The Autorità Garante della Concorrenza del Mercato said it had launched proceedings against Edenred Italia following a complaint by retail sector players, while officials carried out inspections at company premises as part of the probe.

The investigation centres on whether Edenred altered how meal voucher transactions are handled after the introduction of statutory caps on reimbursement fees, including increasing operational complexity and shifting to a third-party interconnection system, which may have raised costs for large retail chains.

Authorities are also examining practices such as longer reimbursement periods and other conditions that could affect prices and market functioning.

Edenred said it “cannot comment on this investigation while it is ongoing” and that it is “at the disposal of the Italian Competition Authority to provide all necessary explanations.”

“Strictly respecting the regulations on meal vouchers in Italy, in particular the conditions imposed by the law of December 16, 2024, Edenred is confident in the outcome of this investigation,” the company added in a statement.

Italy accounts for about 10% of Edenred’s operating revenue. The probe follows regulatory changes in Italy, including caps on merchant commissions in the meal voucher sector, and comes amid an ongoing investigation reported in 2024.