KuwaitOther News

Two delivery companies questioned for ‘monopoly’

KUWAIT: Based on reports made by the Competition Protection Authority (CPA), Ministry of Interior (MOI) investigations showed that two foreign restaurant delivery companies had been monopolizing the local market, making over KD 4 million from their operation in Kuwait, Al-Jarida daily reported yesterday.

In this regard, informed sources said that CPA had urged the two companies to remove violations they had committed and pay a fine equal to what they had made from this monopoly, but they refused to adhere within the legal grace period, which means they have to pay twice as much now. Furthermore, the sources added that most of the manpower hired by the two concerned companies hold article 20 visas (domestic laborers), which is a violation of residency laws.

Notably, investigations revealed that the two companies had signed contracts with various restaurants in 2017 and forced them not to cooperate with other delivery services, which made many restaurants cancel contracts they had signed with other companies; forcing those companies to file several complaints to CPA in June 2018. After that, the two companies allegedly informed restaurants that they would charge them an extra two percent on operations in case they sign contracts with other deliver services. – Al-Jarida

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