Delivery Hero Food Hong Kong being investigated under competition laws

• 28 January 2022
• Transport / Logistics Services

Hong Kong competition authorities are investigating restaurant delivery businesses Foodpanda’s and Deliveroo’s parent company Delivery Hero Food Hong Kong. The Competition Commission is investigating whether the company has imposed anti-competitive practices such as requiring the restaurants to work with its delivery businesses exclusively.

At the same time, it is alleged Deliveroo and Foodpanda also require restaurants to only charge the same fees as they would for in-person takeaways or sit down meals.

If true, the impact of such practices by Delivery Hero Food Hong Kong would be to make competition between delivery businesses softer and more difficult to achieve. Given the parent company is a well financed giant in the sector, this would prevent smaller rivals from moving in on its clients.

“The online food delivery industry has grown tremendously in Hong Kong in recent years, and the food delivery platforms are playing a crucial role in the daily lives of Hong Kong people, particularly with the ongoing pandemic and the need for social distancing,” Rasul Butt, Chief Executive Officer of the Commission, said.  

“Ensuring effective competition in the market to safeguard the interests of industry players and consumers as well as other relevant parties is therefore of utmost importance.”