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Lo Hoi-ying

Hong Kong’s competition watchdog has launched a public consultation on food delivery platform Keeta’s proposed measures to ensure a fair market environment, after previously raising concerns about its exclusivity clauses.
The Competition Commission said on Tuesday that it had begun consulting on three commitments offered by Keeta under Section 60 of the Competition Ordinance, which would become legally binding if accepted.
The commission noted that the platform had confirmed earlier this month that the voluntary changes had already taken effect, and it was seeking to formalise them so they could be enforced.
Backed by Chinese e-commerce giant Meituan, Keeta has proposed simplifying the process for restaurants wishing to move from exclusive arrangements to a multi-platform model.
Restaurants would also be allowed to work with new or smaller platforms without losing incentives such as lower commission rates.
The platform has also pledged to remove clauses preventing restaurants from offering lower prices on their own channels or rival delivery platforms.

The commission said it considered Keeta’s voluntary measures an “appropriate remedy for” its competition concerns and proposed to accept them.
“The proposed commitment, when accepted, will ensure that the above amendments are legally binding and specifically enforceable by the commission under the [Competition] Ordinance,” it said in a statement.
It added that reporting and monitoring mechanisms would be introduced to ensure compliance.
Keeta, which entered the Hong Kong market in 2023, is one of only two remaining food delivery platforms in the city following Deliveroo’s exit last April.
Last November, the commission raised concerns that certain provisions in Keeta’s agreements with partner restaurants could hinder the entry and expansion of new or smaller platforms, and weaken competition in the online food delivery market, potentially breaching the first conduct rule of the ordinance.
It said the platform had pledged to amend the provisions voluntarily and commit to making the changes legally binding.
Keeta said the commitments were made to foster the long-term healthy development of the food delivery and food and beverage market.
“Following the resolution reached with the Competition Commission in November last year, we have been diligently carrying out our commitments,” the company said in a statement.
“Starting from February, Keeta has introduced amendments of the merchant agreement to all restaurant partners.”
It added that the key enhancements were consistent with the direction of previous amendments in the food delivery industry.
In 2023, Deliveroo and Foodpanda amended their exclusivity terms after an investigation by the commission found they might breach the anti-monopoly law.


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Hong Kong launches consultation on Keeta’s proposal over competition concerns

Keeta has pledged to ease exclusivity rules and allow restaurants to join multiple delivery platforms. Photo: Handout

The Competition Commission is seeking views on Keeta’s proposed changes to exclusivity clauses and pricing restrictions. Photo: Jelly Tse

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Keeta’s logo at a restaurant in Kennedy Town.
Photo: Edmond So

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Keeta entered the Hong Kong market in 2023. Photo: Edmond So

Keeta is a big player in Hong Kong now. Photo: Handout

Deliveroo ended operations in Hong Kong in April. Photo: Eugene Lee

News

Hong Kong

Hong Kong Economy

Competition Commission consults on delivery platform’s commitment to curb exclusivity and support fairness in the market


Competition Commission consults on delivery platform’s commitment to curb exclusivity and support fairness in the market.


Food delivery apps

China

Meituan

Hong Kong launches consultation on Keeta’s proposal over competition concerns

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Competition Commission consults on delivery platform’s commitment to curb exclusivity and support fairness in the market

Competition Commission consults on delivery platform’s commitment to curb exclusivity and support fairness in the market