CCP Starts Enquiry against Foodpanda

The Competition Commission of Pakistan (CCP) has initiated an inquiry against the online food shipping provider platform/aggregator, Foodpanda, to research its alleged abuse of dominant role and a probable violation.

The inquiry committee will also review and place earlier than the Commission its findings, whether the exemption granted (for loyalty Agreements) to Foodpanda in April 2019 for 3 years is impeding opposition in any manner in mild of the concerns highlighted through diverse marketplace players.

ALSO, READ

Transparency International Asks Govt to Punish Officers Involved in NBP Appointments Scandal

The CCP has initiated the inquiry below Section 37 of the Act at the formal lawsuits filed through Foodpanda’s competitor, M/s Cheetay Logistics Pakistan Limited, on May 4, 2021,

Formerly, a grievance was also filed by any other online food aggregator, Careem Networks Pakistan (Private) Limited, touching on the exemption granted to the same aggregator in 2019.

Upon receiving the stated lawsuits, the CCP’s Cartel and Trade Abuse Department carried out a preliminary fact-finding exercise and determined that Foodpanda seems to have a dominant role withinside the marketplace of online food delivery platforms with a large amount of admitted volume of 100,000 in line with day meals orders from special restaurants/outlets/meals chains across Pakistan.

Regarding the alleged abuse of the dominant role, the concerns inter alia include; charging exorbitant commissions, presenting constancy rebates, discriminatory practices, starting up diverse reductions to make the most participants, and getting into exclusivity with events thru loyalty agreements.

ALSO, READ

Karachi Board’s Chairman Announces to Retake Physics Paper

These concerns stretch the scope of abuse to be a barrier for the brand new entrants in online food delivery platforms. The inquiry committee has already been operating at the case, consulting all of the involved events, and looking for applied statistics for deliberating the matter objectively.

Findings of the inquiry upon end can be located earlier than the Commission for its decision. CCP is remitted below the Competition Act to make sure loose opposition in all spheres of industrial and economic activity, enhance economic efficiency, and protect consumers from anti-aggressive behavior, inclusive of abuse of dominant role and prohibition of one of these agreements which can misery the opposition.

Post a Comment

Previous Post Next Post
Close[x]