Editorial | Keeta’s fair play pledge will in the end benefit Hong Kong consumers
Credit also goes to the Competition Commission for leaning on the company to help create a more level playing field for all participants
As one of the world’s freest economies, Hong Kong knows that fair competition brings better quality, prices and choices. But for consumers and businesses, they care more about good deals and profits rather than whether the market environment is a level playing field. That is why individual industries can still be tainted by antitrust behaviour.
According to the statutory body, three major provisions adopted by the Hong Kong arm of Chinese food delivery service giant Meituan had hindered market development. This includes charging partnering restaurants a lower commission rate if they work with it on an exclusive basis and restricting or punishing restaurants for working with rival deliverers. Similarly, restaurants are also barred from offering lower menu prices on their own direct channels and non-Keeta platforms.
Given Keeta’s market dominance, the commission considered that these provisions could hinder entry and expansion by new or smaller platforms and soften competition in the online food delivery business. “This will, in turn, deprive restaurants and ultimately consumers of the benefits of effective competition,” it said.