CADE releases study on competition challenges in food delivery market

On 1 July, the Administrative Council for Economic Defense (CADE) released a new working paper, named Mercado de plataformas de delivery de comida pronta: análise de experiências internacionais em defesa da concorrência, gathering international experiences related to competition in the food delivery platform market. The study provides cases on the control of structures, investigations, and initiatives conducted by competition authorities and regulatory bodies of different jurisdictions, offering an overview of the most recent discussions regarding the competitive dynamics of this market.

In recent years, delivery platforms have evolved from a convenience niche into an important part of the economic infrastructure of the food service and retail sectors. The rapid growth of this market, driven by the digitalisation of services, and the changes in consumption patterns observed during the COVID-19 pandemic, has also broadened the debate on its competitive and regulatory impacts.

For Lílian Marques, Chief-Economist at CADE, the survey seeks to gather and arrange information that contributes to the monitoring of this market in constant transformation. “International experience shows that competition challenges in digital platform markets have required an increasingly comprehensive action by authorities, combining competition enforcement, market studies, advocacy, and even regulatory initiatives. By systematising these experiences, CADE seeks to contribute to the qualified debate, offering references for understanding this market evolution", she stated.

In addition, the working paper brings together experiences related to merger reviews, investigations of unilateral conducts and concerted practices, market studies, advocacy initiatives, as well as regulatory proposals. The aim is to identify competition issues and approaches adopted in different countries that may contribute to the understanding of competitive dynamics of the Brazilian food delivery market.

CADE carried out an international benchmarking with partner competition authorities and other jurisdictions that are relevant to the performance of the platforms in the Brazilian market to prepare the study. In addition, the survey was complemented by research based on public information, such as institutional documents, decisions, announcements, and news, focusing on markets that have registered the recent entry or expansion of these platforms.

This publication is part of a series of working papers prepared by CADE aimed at fostering the technical debate and spreading knowledge on relevant topics for antitrust policies. It is available on the agency's website.