Keeta to Revise Exclusivity Clauses Amid Hong Kong Antitrust Concerns

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A food delivery company supported by the Chinese e-commerce giant Meituan has decided to take action to eliminate exclusivity clauses that were labeled as anti-competitive by Hong Kong’s antitrust authority.

In response to concerns raised by the Competition Commission, Keeta—Hong Kong’s second remaining delivery app—has agreed to modify its contracts with partner restaurants, according to a statement released on Wednesday. The watchdog emphasized that Keeta will "voluntarily" revise anti-competitive terms in its agreements. These terms currently require restaurants to pay lower commission rates if they agree to work exclusively with Meituan's Hong Kong food delivery arm.

Additionally, Keeta will adjust provisions that restrict or penalize partnered restaurants for switching to exclusive partnerships with other food delivery platforms. The company will also modify terms that prevent partnered restaurants from offering lower menu prices to consumers through their own direct channels or on competing online platforms, as stated by the commission.

The commission criticized Keeta’s current terms in its agreement with restaurants, stating that these provisions may hinder the entry and growth of new or smaller platforms. This could lead to reduced competition in the online food delivery market, ultimately affecting both restaurants and consumers.

Binding commitment

Beyond the voluntary amendments, Keeta will also provide a binding commitment to the watchdog as required under the Competition Ordinance. According to the statement, this additional step is necessary to ensure that the changes are legally enforceable by the Commission.

"The Commission considers the additional... commitment necessary as a second step to ensure that the amendments are legally binding and specifically enforceable by the Commission under the Ordinance," the statement said.

The watchdog also acknowledged that Keeta had acted in good faith and in a way that supports resolving the Commission’s concerns. Since its launch in Hong Kong in May 2023, Keeta has steadily increased its market share.

See also: How Hongkongers fueled Chinese app Keeta’s dominance in the city’s food delivery market

With significant investment from its parent company, Keeta adopted a growth-before-profit strategy when it entered the Hong Kong market, attracting customers through meal discounts. Keeta and Singapore-based Foodpanda are now the two remaining delivery apps in the city after the departure of British company Deliveroo in early April.

The commission has reached similar resolutions with Deliveroo and Foodpanda in 2023.

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