The Chilean Competition Court (TDLC) has approved commitments reached between the National Economic Prosecutor´s Office (FNE) and the food delivery platforms Uber Eats, PedidosYa -which is controlled by Delivery Hero SE- and Rappi. This decision concludes an investigation in which the FNE found the widespread presence of Most Favoured Nation (MFN) clauses, also known as price parity clauses, and a limited presence of exclusivity and semi-exclusivity clauses, in the contracts and T&Cs between the platforms and the restaurants.
The investigation conducted by the Antimonopoly Division of the FNE revealed that the MFN clauses limited the freedom of restaurants to set the prices for their products in different distribution channels. Particularly, these restrictions prevented them from offering lower prices on alternative competing platforms or within their own distribution channels.
In the approved commitments, Uber Eats, PedidosYa, and Rappi pledged to remove or modify MFN clauses -including all versions of MFN: narrow, wide and APPA- and other restrictive clauses or commercial conditions that prevent restaurants from offering products at lower prices on alternative platforms or within their own channels. In addition, the platforms committed not to include such clauses in the future and to inform restaurants that they are free to independently set their own prices.
Moreover, a reporting obligation on the scope of exclusivity and semi-exclusivity clauses has been adopted. Despite their limited scope, as the FNE’s investigation showed, these clauses could create or tend to create risks and/or anti-competitive effects on the markets if their proliferation is observed. Although Uber Eats did not undertake this commitment, the FNE will continue to use the tools provided by the law to enforce competition laws in this market.
The commitments entered by the platforms will remain in force indefinitely, with the possibility of reviewing them after an initial period of three years has passed.
In its decision, the TDLC, after an examination of these commitments, concluded that “the agreements adequately safeguard competition in the market for digital restaurant platforms as they are appropriate and proportionate to the results of the Investigation”.
The National Economic Prosecutor, Jorge Grunberg, valued the TDLC’s decision, stating that “these commitments make the market for digital platforms for the purchase and delivery of restaurant products more competitive. They efficiently and effectively solve the anticompetitive risks associated with the MFN clauses. We will continue to use all the powers granted to us by the law to defend and promote competition in this market.”