Brazil’s antitrust regulator CADE has also reopened a probe into the case.
The São Paulo state court (TJSP) began hearing the case on 11 August over exclusivity requirements in contracts between delivery service 99Food and restaurants. The clauses prevent partner restaurants from using competing platforms, including Keeta.
The rapporteur judge voted against the contractual clauses, finding them illegal. However, no final decision has been made: the trial was paused after another judge requested additional time to review the case files. No new hearing date has been set.
Separately, in early July, Brazil’s antitrust regulator CADE reopened a probe into partial exclusivity clauses in 99Food’s contracts with restaurants. The regulator had initially closed the probe on 25 June, citing insufficient evidence. The investigation was reopened after new testimony from restaurant owners. CADE has not set a deadline for completing the probe.
99Food says its exclusivity clauses are pro-competitive. The company argues that its main competitor, iFood, controls more than 80% of the market and that the restrictions help smaller platforms attract restaurants and compete with the market leader. The 80% figure, however, is 99Food’s own estimate, not a finding by CADE or the court.
The court case and CADE investigation are proceeding independently and could result in different outcomes. For now, 99Food continues to operate under its existing contracts, and neither the court nor the regulator has imposed any temporary restrictions on the company.
If the clauses are found to be illegal, 99Food would likely have to amend its contracts with restaurants. This could affect its business model and the way Brazil’s food-delivery market operates.
Source: The Rio Times
