A São Paulo court has ruled that 99Food, the food delivery unit of Chinese ride-hailing giant Didi Global Inc., violated Brazil’s competition law by signing exclusive agreements with restaurants to block rival Keeta, Meituan’s overseas food delivery brand, reports Caixin. The Oct. 20 ruling bars 99Food from enforcing contract terms that prevent restaurants from partnering with Keeta. The court found such clauses discriminatory and in breach of constitutional principles of free competition and equal treatment.
Keeta filed the lawsuit in August, accusing 99Food of using cash incentives to pressure merchants into signing exclusivity deals aimed at shutting out Keeta. The suit alleged 99Food spent at least 900 million reais ($167 million) to secure these arrangements.
Documents cited in the case show 99Food offered merchants prepaid cash bonuses in exchange for pledging not to with Keeta or its affiliates, nor with Latin American rival Rappi. In return, merchants agreed to avoid any direct or indirect business relationships that could give Keeta or its peers a strategic edge.