Keeta says that the competitor carries out “anti-competitive practices”; 99Food denies this and claims to have a “commitment to ethical conduct”
O (Administrative Council for Economic Defense) opened an administrative inquiry after a complaint from the against a for alleged anti-competitive practices.
After CADE completes the investigation, the case may be closed or prosecuted, but only after judgment by the antitrust body’s court.
Chinese delivery company Keeta the start of its operation in the metropolitan region of Rio de Janeiro in February to focus on legal disputes against its competitors e .
According to Keeta, 99Food abuses its dominant position in the food market “marketplaces” of delivery. He stated that the competitor was prohibiting partner restaurants from signing contracts with Keeta due to “financial incentives”.
The Chinese declared that the practice would result in a “serious risk” of not being able to establish a “enough network” of restaurants registered to establish themselves in the market.
In a note sent to Poder360Keeta CEO Tony Qiu stated that exclusivity clauses, especially those that prohibit establishments from working with specific new entrants, “put fair competition in Brazil at risk” both in the food delivery sector and throughout the economy because it prevents free competition.
“The food delivery segment urgently needs decisions that promote the open market and bring benefits to the entire ecosystem, enabling sustainable growth and innovation. Keeta believes that restaurants must have the freedom to diversify their sales channels to grow, delivery partners must have access to more income opportunities, and consumers must benefit from more options, lower prices and better service standards”declared Qiu.
99Food stated in a note sent to Poder360 what “naturally welcomes Cade’s interest in monitoring sustainable development” of the delivery market.
The company declared that Cade’s actions are “essential” to ensure “conditions that allow new players, such as 99Food, to effectively operate, increasing competition and the diversity of offers to consumers, restaurants and delivery people”.
“99Food reiterates its commitment to ethical and pro-competition conduct, as well as to continuing investments in the sector, generating greater demand and profitability for restaurants, expanding earning opportunities for delivery people and offering consumers convenience and affordable prices — all of this contributing to a more dynamic, competitive and balanced environment”the company stated.
