CCP inquiring into online food delivery platform for monopoly
July 8, 2021
ISLAMABAD: The Competition Commission of Pakistan (CCP) has initiated an inquiry against online food delivery service platform Foodpanda for alleged use of dominance position.
According to CCP’s official announcement made here on Tuesday, the commission initiated an inquiry against the online food delivery service platform/aggregator, Foodpanda, to investigate its alleged abuse of dominant position and a possible violation of Sections 3 (Abuse of Dominant Position) and Section 4 (Prohibited Agreement) of the Competition Act, 2010, in the market of online food delivery platforms.
The inquiry committee will review and place before the commission its findings, whether the three-year exemption granted (for loyalty agreements) to Foodpanda in April 2019 is impeding competition in the light of concerns highlighted by various market players. The inquiry initiated under Section 37 of the Act, on the formal complaints filed by Foodpanda's competitors, M/s Cheetay Logistics Pakistan Limited on 4 May 2021, and the All Pakistan Restaurant Association (APRA) on 10 June 2021. Another complaint was also filed by another online food aggregator, Careem Networks Pakistan (Private) Limited, pertaining to the exemption granted in 2019.