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CPA challenges monopoly of two food-delivery firms

Two of the largest food delivery firms in the country have been forced to remove the monopolistic provisions in their contract due to the diligence and unrelenting stance of the Competition Protection Authority (CPA).

Revealing this, MP Ahmed Al-Fadel said that the CPA is strict in implementing the competition law and had refused to negotiate with the two companies involved, so they were forced to comply with the law and remove the monopolistic clauses from their contracts.

In a press statement, Al-Fadel explained the authority found the contracts of the two companies with restaurants suspicious, as they charged two percent more to restaurants if they used the services of another delivery firm. He added that the authority had asked the two companies several times to remove this clause in their contract but they had not heeded.

The lawmaker expressed appreciation and gratitude to CPA for its position as it led to the compliance of the two companies with the law, so the local restaurants have been notified they are free to deal with any delivery company to ensure fair competition and to better serve the public. He urged the CPA to take more steps through the inclusion of flower delivery services.

He stressed the need to enforce the law on delivery companies that monopolize the market because of the harm they cause to restaurant owners and consumers. He pointed out other trade violation files will be opened later, such as those regarding the fish market, vegetable market, Amghara and other places or markets monopolized by non-Kuwaitis.

 

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