Kuwait freezes food delivery platform fees for three years in major market reform

• Consumer rights are central to the executive regulations and include full price transparency before order completion, no hidden fees, unified pricing that prevents consumers from being charged more than in-store rates, clear complaint mechanisms with set resolution timelines, and regulated cancellation and refund procedures with defined financial responsibilities.

The Ministry of Commerce and Industry has issued a landmark decision regulating the operation of restaurant and ready-made food delivery services through electronic platforms, one of the fastest-growing and most influential digital sectors in the national economy.

Under the new regulation, platform fees and commissions charged to restaurants and food outlets will be fixed for a period of three years. The move is described as a corrective step aimed at restoring market stability, enabling businesses to plan financially and operationally, and protecting small and medium enterprises from unfair market pressures, Al-Rai daily reports.

Delivery platforms are required to determine their 2026 fee structures and submit them to the Ministry within one month of the issuance of regulations.

Service providers must also adopt a unified annual service framework approved by the Ministry, covering all fees, commissions, their maximum limits and calculation mechanisms. The decision prohibits the collection of any fees or the granting of discounts outside this approved framework and cancels any parallel side agreements.

The resolution further bans forced exclusivity clauses, the use of discriminatory algorithms, and any unequal preferential treatment among customers within the same category.

Platforms must document all fees in clear written contracts, adopt annual price lists, and refrain from modifying prices during the year. Any fees not explicitly stipulated will be considered legally invalid.

Companies licensed to operate electronic delivery platforms are required to adjust their legal status and amend their licensed activity to “managing delivery services via electronic platforms” under international classification No. (532013) within two months of the regulation taking effect.

The Ministry stated that the decision reaffirms the government’s commitment to consumer protection, supporting the national commercial sector, and creating a fair and transparent competitive environment in the digital economy.

It added that the measure aligns with the maturity of the Kuwaiti market while enhancing investment attractiveness and long-term sustainability.

Officials explained that the regulation followed extensive monitoring and economic studies of the delivery market, which revealed monopolistic practices and unfair tactics by some operators. These included unjustified commission increases, exclusivity requirements, lack of transparency in fee calculations, and discriminatory technical mechanisms affecting visibility within applications.

In coordination with platforms, restaurant owners and delivery companies, the Ministry developed the framework through three months of intensive consultations, prioritizing consumer protection and market sustainability.

Described as the first comprehensive and legally binding Gulf legislation of its kind, the decision introduces effective monitoring tools and clear penalties, including warnings, closure orders and license cancellations for violations. The Ministry emphasized that the framework positions Kuwait as a regional leader in digital economy regulation.

The regulation also grants restaurants the right to access their operational data free of charge and confirms their freedom to contract with multiple platforms.

Consumer rights are central to the executive regulations and include full price transparency before order completion, no hidden fees, unified pricing that prevents consumers from being charged more than in-store rates, clear complaint mechanisms with set resolution timelines, and regulated cancellation and refund procedures with defined financial responsibilities.