CCP Initiates Inquiry Against Apathetic Foodpanda Management
The investigation disclosed that the food delivery app holds a dominant position in the market as they entertain nearly 100,000 orders per day
The Competition Commission of Pakistan (CCP) has responded to the demands of delivery riders of Foodpanda and instigated an inquiry against the management for mistreating employees.
The matter was timely highlighted by News360 on July 7 and our correspondent had prepared a detailed report in this regard, featuring indifference of the food delivery company.
The protestors had claimed that the management laid off several employees and was not paying insurance money to the existing ones.
Moreover, it was learned that the food delivery app has reduced the commission per ride to Rs 30 from around Rs 70.
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Taking notice of the matter, CCP announced to launch an inquiry against Foodpanda.
The commission is investigating alleged abuse of dominant position and a possible violation of the Competition Act.
CCP has initiated an enquiry against Foodpanda to investigate its alleged abuse of dominant position and a possible violation of Sections 3 and 4 (Prohibited Agreement) of the Competition Act, 2010, in the market of online food delivery platforms.#CCP #Pakistan pic.twitter.com/ep4aVmetLV
— Competition Commission of Pakistan (@CCP_Pakistan) July 7, 2021
Further, the investigation will also highlight whether the exemption granted (for loyalty agreements) to Foodpanda in April 2019 for 3 years is impeding competition in any manner by various market players.
The CCP has initiated the inquiry under Section 37 of the Act on the formal complaints filed by Foodpanda’s competitors.
The statement added that upon receiving said complaints, the CCP’s Cartel and Trade Abuse Department found out that Foodpanda holds a dominant position in the market of online food delivery with entertaining nearly 100,000 orders per day from different eatery outlets.
The inquiry committee listed the concerns regarding the alleged abuse of the dominant position including charging exorbitant commissions, offering fidelity rebates, discriminatory practices, setting out various discounts to exploit participants, etc.
The body added that these concerns would stretch the scope of abuse to being a barrier for the new entrants in the online food market.
After CCP set an inquiry against Foodpanda management, the employees are hopeful to get their rights.
