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Manifestation filed this Monday, June 29, requests analysis of prices, costs, and commercial incentives used by delivery platforms in Brazil.
A new dispute in the Brazilian delivery market has reached the Administrative Council for Economic Defense, Cade.
iFood filed, this Monday, June 29, a manifestation related to the commercial practices of 99Food and Keeta.
According to the Brazilian platform, the competitors could use aggressive discounts, subsidies, and prolonged absorption of losses to quickly gain customers.
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This model, according to iFood, could unbalance competition and affect restaurants, couriers, consumers, and other companies in the sector.
Cade may analyze information related to the prices, costs, and commercial incentives used by the mentioned platforms.
Request to Cade targets strategies of 99Food and Keeta
The manifestation presented by iFood focuses on the operations of 99Food, controlled by DiDi, and Keeta, linked to Meituan.
According to the document, the two companies would have the financial capacity to maintain operations with negative margins for prolonged periods.
High discounts, in this scenario, could be sustained even when revenues were not sufficient to cover all operational costs.
The accelerated expansion of the platforms would be favored, according to iFood, by the ability to absorb losses during the conquest of new markets.
The allegations will still need to be examined by Cade before any conclusion about possible irregularities.
Support for international expansion appears in the manifestation
The petition relates the financial capacity of the companies to the internationalization policies of Chinese technology companies.
The document mentions government initiatives aimed at global expansion, including the so-called New Silk Road.
This environment, according to the argument presented, could favor international operations supported by high investments.
Companies would thus be able to accept temporary losses to expand their presence in strategic markets.
The described relationship is part of the arguments presented by iFood and will still be evaluated by the antitrust body.
Cited reports would point to billion-dollar losses
The statement also uses market analyses and reports on the financial results of Chinese companies.
According to the document, significant losses would have been recorded during recent international expansion strategies.
Some billion-dollar losses would be associated with investments outside China and the adoption of aggressive commercial incentives.
iFood claims that this model would have already affected local companies after the entry of platforms in other countries.
Markets like Hong Kong, Qatar, and Kuwait were cited by the company as comparison references.
These examples, however, are part of the argument presented by iFood and do not represent an official conclusion from Cade.
Analysis may evaluate prices, costs, and subsidies
The request asks Cade to closely monitor the strategies of platforms operating in Brazil.
Among the main points indicated are:
- Prices charged to consumers and restaurants;
- Costs involved in delivery operations;
- Discounts offered by platforms;
- Subsidies used to finance promotions;
- Maintenance of operations with negative margins.
The monitoring may verify if there are practices considered predatory in the Brazilian delivery sector.
The analysis may also consider potential risks to the sustainability of the ecosystem formed by restaurants, delivery personnel, consumers, and platforms.
iFood confirms statement sent to Cade
In a statement sent via email to the Olhar Digital portal, iFood confirmed the submission of the document.
The company stated that the initiative aims to contribute to the monitoring conducted by Cade on the delivery market in Brazil.
The material, according to the platform, gathers information on predatory pricing practices documented in other markets.
Some of these strategies are already beginning to be identified in the country, according to the assessment presented by iFood.
The company stated that it remains available to provide data, evidence, and technical clarifications to the authority.
What can happen after the request?
Cade may request additional documents and deepen the evaluation of the commercial strategies adopted by the mentioned companies.
No official conclusion has been released so far regarding anti-competitive practices attributed to 99Food or Keeta.
The statement, therefore, represents a request for monitoring and a possible initial stage of more detailed analysis.
The challenge will be to ensure competition capable of offering attractive prices without compromising the sustainability of restaurants, delivery personnel, and other participants.
In your opinion, do high discounts benefit consumers or can they harm competition in the long term? Leave your comment!
