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Oscar Liu

Keeta has promised to offer fairer arrangements for partnering restaurants after Hong Kong’s antitrust watchdog raised concerns about the food delivery platform charging eateries working exclusively with it lower commissions and punishing any that collaborated with its rivals.
The Competition Commission said on Wednesday that it and Keeta had reached a consensus, with the business promising to voluntarily amend the existing provisions and make a commitment to the watchdog to make the changes legally binding.
Keeta, the Hong Kong arm of Chinese food delivery service giant Meituan, hit the streets in 2023 and rapidly became a big player in the local market.
Deliveroo, one of its two main rivals, ended operations in Hong Kong and sold some of its assets to Foodpanda in April amid losses.

The commission said on Wednesday that it had uncovered three major provisions adopted by Keeta that hindered market development.
“Given that Keeta likely has a certain degree of market power in the online food delivery market, the commission considers that these provisions may hinder entry and expansion by new or smaller platforms, and soften competition in the online food delivery market,” it said.
“This will, in turn, deprive restaurants and ultimately consumers of the benefits of effective competition.”
One of the provisions involves Keeta charging partnering restaurants a lower commission rate if they work with it on an exclusive basis.
The commission also said Keeta had restricted or even punished partnering restaurants for working with its rivals.
The watchdog added that the company had prevented restaurants from offering lower menu prices on their own direct channels and non-Keeta platforms.

In response to the commission’s concerns, Keeta promised to amend its terms and conditions for partnering restaurants as the first step in making changes.
The commission said Keeta would make a commitment to the watchdog under Section 60 of the Competition Ordinance.
The watchdog said the amendments would give restaurants more flexibility to partner with new or smaller platforms in setting menu prices for dine-in and other delivery channels.
New entrants and small platforms would also be able to collaborate with more restaurants and expand their networks, it said.
“Ultimately, consumers will benefit from stronger competition between platforms, which brings more choices and potentially improved services and lower menu prices,” the commission said.
The commission noted that Keeta was cooperative in addressing its concerns and had acted in good faith.
In response, Keeta said it had maintained close communication with the commission and reached a mutually agreed settlement to foster the long-term healthy development of Hong Kong’s food delivery and food and beverage market.
“We firmly believe that healthy competition contributes to sustainable growth of the industry,” a Keeta spokesman said.
“We will continue to collaborate with the food and beverage sector for mutual success, jointly cultivating a vibrant and diversified market ecosystem that benefits all consumers.”


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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

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Hong Kong

Hong Kong Economy

Competition Commission says food delivery platform will voluntarily amend provisions, with changes to later become legally binding


Competition Commission says food delivery platform will voluntarily amend provisions, with changes to later become legally binding.


Meituan

Hong Kong’s Keeta to end unfair commission practices after watchdog probe

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Competition Commission says food delivery platform will voluntarily amend provisions, with changes to later become legally binding

Competition Commission says food delivery platform will voluntarily amend provisions, with changes to later become legally binding