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Food and Drinks
Hong KongSociety

Hong Kong antitrust watchdog investigates Foodpanda, Deliveroo over concerns of imposing unfair terms on restaurants

  • Competition Commission looks into possibility of Foodpanda, Deliveroo using vast market positions to restrict potential rivals
  • Watchdog asks any local restaurants with information related to investigation to come forward by February 11

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The Competition Commission has called on restaurants to come forward if they know of any exclusive and strict partnership agreements set by Foodpanda and Deliveroo. Photo: Felix Wong
Ng Kang-chungandKathleen Magramo
Hong Kong’s antitrust watchdog is investigating the city’s two largest online food delivery services, Foodpanda and Deliveroo, over concerns the pair could use their dominant market positions to impose strict and exclusive deals on partner eateries.

Local restaurants that have any information about the practices of the two food delivery giants were asked to come forward to the Competition Commission by February 11.

In a statement on Thursday, the commission said it was specifically looking into whether the two online platforms had imposed restrictive conditions on their partner restaurants when entering into agreements with them.

The practices could include terms that discourage restaurants from signing up with other delivery platforms, using their own pick up services, as well requiring partners to offer them exclusive bargains for menu items.

“The commission considers that, if present, these requirements may have the potential effect of softening competition among online food delivery platforms, as well as hindering entry and expansion by new or smaller online food delivery platforms, depriving consumers and partner restaurants of the benefits of effective competition,” the commission said in a statement.

Rasul Butt, chief executive officer of the commission, said that food delivery platforms had become crucial in the daily lives of Hongkongers, especially during the Covid-19 pandemic.
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