Photo: Collected
Online food delivery platform Foodpanda has been fined Tk10 lakh for abusing its dominant position in the market which violates the Competition Act 2012. The fine is imposed by Bangladesh Competition Commission (BCC).
The decision came following the commission’s final verdict over a complaint filed in December 2020 by MGH Restaurants Pvt Ltd against the food delivery platform.
"During the commission's investigation, it found that Foodpanda limited the business of Nando's and Peyela, two of the popular MGH Restaurants brands by abusing its dominant position in the local market," BCC Chairman Pradip Ranjan Chakraborty said on Monday (15 January).
In addition to the Tk 10 lakh punishment, the food delivery platform was further restricted by the regulatory body, which forbade it from preventing restaurants from forming relationships with other food delivery platforms.
This development is a big step toward assuring fair competition in Bangladesh's fast changing food delivery market. The BCC's ruling attempts to protect the interests of diners and eateries alike while promoting a more competitive market.
Meanwhile, in a statement issued by the food delivery service, foodpanda said aware of the recent order passed by the Bangladesh Competition Commission.
Foodpanda Bangladesh Co-Founder and Managing Director Zubair BA Siddiky said, "Our lawyers are overseeing the matter. We will appeal against this verdict."
"We have utmost respect for the law of the land but it is our belief that foodpanda's position in the industry has not been adequately reflected in the order based on the facts presented," the company said in a statement.
"We are reviewing the order thoroughly and intend to appeal against this decision in accordance with due process of law, " it added.
Messenger/Sun Yath
