Watchdog ends probe into Foodpanda and Deliveroo
The Competition Commission said on Friday it had accepted commitments from Foodpanda and Deliveroo to give restaurants more freedom to partner with other online food delivery platforms and to set their own menu prices. The watchdog said it would close its investigation into the two platforms and would not refer them to the Competition Tribunal. An earlier investigation by the commission found that the requirements imposed by the two leading online food delivery platforms on their partner restaurants could hinder entry and expansion by new or smaller platforms, depriving consumers of the benefits of effective competition. In a statement, the commission said that Foodpanda and Deliveroo had promised to amend their agreements with restaurants to allow them to switch from working exclusively with them, to also working with other online food delivery platforms.  They would also remove provisions preventing restaurants from offering lower menu prices to consumers on their own direct channels. The commission's CEO, Rasul Butt, said the commitments made would create a level playing field for companies already operating in the online food delivery market and those interested in entering it.  “While restaurants can enjoy more flexibility in partnering with small platforms and pricing menu items across their dine-in and other delivery channels, new entrants and small platforms can partner with more restaurants and grow their network,” he said in a statement.  “Ultimately, end customers will reap the benefits of increased competition between platforms, which include more choices and potentially better services and lower menu prices.”