A court in São Paulo has invalidated the exclusive partnership clauses in 99Food’s contracts, while the antitrust regulator has launched an investigation into the company following a complaint from Keeta.
The 3rd Business and Arbitration Conflicts Court in São Paulo, a state-level trial court, has partially ruled in favor of Keeta Delivery Brazil in its lawsuit against 99Food, striking down contractual clauses that barred partner restaurants from working with Keeta. Judge Fábio Henrique Prado de Toledo deemed the restrictions unconstitutional, citing violations of free competition and equality principles.
The decision orders 99Food to stop enforcing the exclusivity clauses and prohibits the company from including similar provisions in future contracts. Any breach is punishable by a 100,000 reais ($18,560) fine per contract, payable to Keeta. The court also granted an urgent injunction, ensuring restaurants can partner with Keeta without facing penalties.
However, Keeta must comply with a safeguard: when signing restaurants previously bound by exclusivity, it must deposit the contractual penalty amount or provide a judicial guarantee within 15 days. Requests for public disclosure and damage compensation were denied due to lack of evidence.
Both companies will share litigation costs proportionally, and attorney fees were set at 10 percent of the case value for each side.
The decision is not final, however. Under Brazilian civil procedure, 99Food may still appeal to the São Paulo Court of Justice, the state appellate court, within the legal deadline, typically 15 business days after publication of the ruling.
Meanwhile, Brazil’s antitrust authority has opened a preliminary investigation into 99Food’s alleged use of exclusivity clauses. The Administrative Council for Economic Defense, or CADE, is examining a complaint filed by Keeta, which claims that 99Food’s contracts with major restaurant chains — such as McDonald’s, Outback and Popeyes — restrict competition and hinder market entry. Keeta argues that these practices could reinforce a duopoly with iFood, the dominant player in Brazil’s food delivery market.
The agency’s investigation is independent of the judiciary procedures.
Source: MLex
