The Bangladesh Competition Commission (BCC) has levied a Tk10 lakh fine on foodpanda, an online food delivery platform, for breaching the Competition Act 2012 by abusing its dominant position in the market. This decision comes in response to a complaint filed three years ago by MGH Restaurants Pvt Ltd, alleging unfair practices by foodpanda in the food delivery market.
The BCC’s investigation revealed that foodpanda limited the business of two popular brands owned by MGH Restaurants, Nando’s and Peyela, through its abuse of dominance in the local market. In addition to the fine, the BCC imposed restrictions on foodpanda, preventing it from obstructing restaurants from entering partnerships with other food delivery platforms.
This significant move by the BCC aims to foster fair competition in Bangladesh’s rapidly evolving food delivery sector. The regulatory authority’s decision is designed to create a more competitive marketplace while safeguarding the interests of both consumers and restaurants. In response to the BCC’s ruling, foodpanda has indicated its intention to appeal, stating that it believes its position in the industry has not been adequately reflected in the order. The company’s co-founder and managing director, Zubair BA Siddiky, mentioned that their lawyers are overseeing the matter and they plan to appeal against the verdict.
The dispute between MGH Restaurants and foodpanda dates back to December 2020 when MGH Restaurants accused foodpanda of abusing its dominant position and engaging in unfair practices. According to the complaint, foodpanda threatened to increase the commission rate during the Covid-19 pandemic, which severely impacted the restaurant business. As many restaurants struggled for survival, foodpanda allegedly violated the existing agreement by arbitrarily reducing MGH Restaurants’ delivery radius and suspending them from the online platform. In response, MGH Restaurants filed a complaint before the BCC in December 2020, leading to the recent
