The food delivery platform said it is acting within the law and supports the investigation involving the restaurants.
Brazilian food delivery platform 99Food, controlled by China's DiDi, has commented for the first time on CADE's decision to reopen its investigation into alleged anti-competitive practices in the delivery market. The company rejected allegations made by rival Keeta, saying it operates within Brazilian law and does not use practices that restrict competition.
The comments came during the launch of 99Food's operations in Santos, the second Brazilian city where the country's three largest food delivery platforms — 99Food, Keeta and iFood — are all present.
The probe was originally triggered by a complaint filed by Keeta,which alleges that 99Food signs exclusivity contracts preventing restaurants from working with other delivery apps. Following its initial review, CADE's General Superintendence closed the case on June 26. However, the antitrust authority decided to reopen the proceedings in July. The argument justifying the reopening of the case is that the restaurants holding these exclusivity contracts had not been heard by the agency. The Brazilian Association of Bars and Restaurants (Abrasel) also complained that it had not been consulted.
99 director Bruno Rossini rejected the allegations, saying the company's commercial practices are no different from those of its competitors. According to Rossini, it is Keeta itself that promotes an exclusivity policy with restaurants.
"We felt this practice of exclusivity in the market when we decided to enter Santos and looked for restaurants. It's not what they say, but the opposite. What we do is legitimate and is not a ban clause,"
Rossini told NeoFeed.
Rossini said 99Food currently operates in fewer than 100 Brazilian cities and that its oldest operation is less than a year old, making it too early to suggest the company has enough market power for its contracts to significantly affect competition. He added that the agreements offered by 99Food comply with CADE's rules and do not distort the market.
According to Rossini, most restaurants in Santos already work with multiple delivery platforms. While 99Food offers different commercial arrangements depending on business conditions, it does not prohibit restaurants from partnering with competing apps.
The company also welcomed CADE's decision to continue the investigation, saying restaurants should indeed be heard by the antitrust authority.
"We received the decision calmly. 99 innovated within what is permitted, and CADE will decide on that. Competitors do exactly the same thing,"
Rossini said.
At the same time, 99Food said it will not adopt two practices that have drawn criticism from the market over Keeta's operations. The company said it does not plan to use an intermediate purchase model, under which the platform buys food from restaurants on behalf of customers, or reimburse restaurants for the cost of terminating exclusivity agreements with competitors. According to NeoFeed, Keeta has offered restaurants up to R$1 million (approx. $197,000) to join its platform.
The launch in Santos marks the completion of 99's initial R$2 billion (approx. $394 million) investment plan in Brazil. The company will now begin a new investment cycle and allocate R$50 million (approx. $9.8 million) to build support bases for delivery drivers across its operating cities. Next week, it will also launch the 99 Compras platform in São Paulo, allowing users to order not only food but also products from supermarkets, pharmacies, florists and stationery stores.
Source: NeoFeed
