Views Sought To Break Duopoly On Delivery Services

The Competition Commission said it’s launching a two-week consultation on proposed changes made by two leading online food delivery platforms on requirements that they impose on partnering restaurants.

The announcement comes after the antitrust watchdog found that certain partnering rules by Foodpanda and Deliveroo could hurt competition.

For example, it said the two companies had been charging a lower commission rate if a restaurant partners exclusively with one of them, but the eatery could be penalised if it also works with other food delivery providers.

Restaurants are also barred from offering lower prices on their own channels or competing online platforms.

A commission spokesperson said the two platforms have a combined market share of more than 90 percent in Hong Kong, and these requirements could hinder new or smaller players from entering the market.

The commission said Foodpanda and Deliveroo have offered to allow eateries to work with new and smaller food delivery services without losing their entitlements, and make it easier for restaurants to switch away from partnering exclusively with them.

They've also proposed letting restaurants charge less on their own channels or other food delivery platforms.

Members of the public have until June 15 to submit their views.

If the proposed changes are accepted by the commission, Foodpanda and Deliveroo have 90 days to make the amendments.