Competition Commission Seeks Input on Delivery Giant's Commitments
Hong Kong's Competition Commission has initiated a public consultation period concerning proposals put forth by the online food delivery platform, Keeta. These proposed measures aim to address prior concerns raised by the commission regarding the platform's practices, specifically focusing on curbing exclusivity clauses and fostering a more equitable market landscape for food delivery services. The consultation, launched today, invites feedback on Keeta's commitments to significant changes in its operational agreements with partner restaurants.
The core of the commission's concerns revolved around provisions within Keeta's contracts that appeared to stifle competition. Specifically, these included:
Exclusivity incentives: Offering restaurants reduced commission rates for agreements that exclusively bound them to Keeta. This practice was seen as a potential barrier for newer or smaller platforms attempting to secure restaurant partnerships.
Price parity clauses: Preventing restaurants from advertising or offering lower menu prices through their own direct sales channels or on competing delivery platforms. This restriction was flagged for its potential to dampen price-based competition across the sector.
Penalties for non-exclusivity: Terms that either restricted restaurants from switching from exclusive arrangements or imposed penalties for doing so with other platforms.
Keeta has indicated that it has already begun implementing some of these voluntary changes earlier this month. The current consultation aims to formalize these commitments, rendering them legally binding and enforceable under the Competition Ordinance. The commission noted that Keeta's confirmed voluntary amendments have already taken effect.
Read More: BP's Q1 2026 Profit Jumps to $3.2 Billion Due to Iran Conflict
Context: A Two-Player Market Landscape
The proposed changes come at a time when the Hong Kong food delivery market is dominated by a duopoly. Following the exit of Deliveroo in early April, Keeta and Foodpanda now represent the primary options for consumers and restaurants. The commission's intervention, in this context, suggests an effort to ensure that the remaining players operate in a manner that does not unduly disadvantage emerging competitors or limit consumer choice through restrictive agreements.
"The Commission noted that Keeta offered lower commission rates to restaurants that worked exclusively with its platform." - The Standard
"Keeta’s provisions in the delivery app’s agreement with restaurants." - Hong Kong Free Press
The engagement with the public via this consultation signifies a procedural step by the Competition Commission to solidify agreements and ensure continued market fairness, particularly in light of Keeta's acknowledged market power.
