SÃO PAULO, May 20 (Reuters) – Food delivery app iFood, which belongs to Dutch investment group Prosus, is suing rival Keeta, controlled by Chinese group Meituan, for alleged unfair competition in Brazil.
In an action filed in a business and conflict court in São Paulo, iFood asks the judge to order the competitor to cease such practices and sentence it to pay moral damages in the amount of R$1 million, in addition to additional compensation to be determined, according to documents obtained by Reuters.
In the process, iFood alleges that consultancies approached its employees to obtain strategic and confidential information about the company’s business in exchange for ‘significant remuneration’.
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Contacted by Reuters, Keeta said it defends an open and fair market and operates in compliance with all local requirements.
The company also stated that it does not hire third parties to approach individuals on its behalf for the purposes described and that it has not received any notification.
In its legal action, iFood claimed to have identified a then employee who accepted one of these proposals and participated in a videoconference while he was still at the company, which resulted in a police investigation, including search and seizure of electronic devices.
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Through these measures, iFood obtained documents that, according to the company, show that accounts linked to the Meituan domain participated in the conversations.
Keeta announced its entry into the Brazilian food delivery market – dominated by iFood – around a year ago, with an initial investment of approximately US$1 billion.
