The Competition Commission has accepted a commitment from online food delivery platform Kangaroo Limited, known as Keeta, noting that the platform’s revised agreements with partner restaurants are now legally binding and enforceable by the commission.
The antitrust watchdog previously raised concerns that certain provisions in Keeta’s agreements with partner restaurants could hinder the entry and expansion of new or small-scale platforms, potentially weakening competition in the online food delivery market and violating the First Conduct Rule of the Competition Ordinance.
To address the Commission’s concerns, Keeta agreed to a two-phase modification of its restaurant partnerships, comprising a voluntary amendment of contract terms in the first phase and a commitment made to the regulator in the second phase.
Keeta had confirmed that the voluntary amendments took effect in early April. In its proposed commitment, the platform pledged to amend provisions to ensure restaurants will not lose commercial incentives, such as lower commission rates, enjoyed under exclusive partnerships, even if they partner with new or small platforms.
The platform also agreed to modify terms to make it easier for restaurants to switch from an exclusive partnership to working with multiple platforms, as well as remove restrictions that prevent restaurants from offering lower menu prices on their own sales channels and other online food delivery platforms.
The commitment comes into effect on Wednesday and will remain valid until December 28, with reporting mechanisms established to ensure Keeta’s compliance.
A spokesperson for the Commission stated that all major market players must adhere to the same standard moving forward to safeguard fair competition, thereby bringing benefits to restaurants, emerging platforms, and consumers.
The Commission also stressed that under Section 61 of the Ordinance, it reserves the right to withdraw its acceptance of the commitment should Keeta fail to comply with the terms.
