Online food delivery platform Keeta has agreed to revise specific provisions in its agreements with partner restaurants through a two-step process, after the Competition Commission raised concerns that these terms could dampen market competition.
According to a statement issued on Wednesday (Nov 12), the Commission noted that Keeta offered lower commission rates to restaurants that worked exclusively with its platform.
Other contested provisions included restrictions or penalties preventing partner restaurants from switching from exclusive arrangements with Keeta to partnering with other platforms, as well as prohibitions that prevented restaurants from offering lower menu prices through their own direct channels or on competing online platforms.
Given Keeta’s likely market power in the online food delivery sector, the Commission considered that these terms could hinder the entry and expansion of new or smaller platforms.
Following the Commission’s intervention, Keeta agreed to voluntarily amend the relevant terms in the first step of the process.
In the second step, Keeta will offer a commitment to the Commission under Section 60 of the Competition Ordinance, reflecting the same changes made in the initial voluntary amendments.
Implementing these revisions in the first phase will ensure the clauses are amended or removed quickly, bringing immediate benefits to both restaurants and consumers.
In response, Keeta stated that it has maintained close communication with the Commission.
After detailed discussions, the platform voluntarily reached an agreement and proactively proposed commitments in accordance with the law to support the long-term healthy development of the food delivery and catering markets.
“We believe that fair competition is conducive to the sustainable development of the industry,” the company said.
