The Ministry of Commerce and Industry in Kuwait has issued a binding decision. This is to regulate restaurant and ready-made food delivery services, fixing of fees and commissions, cancellation of side agreements, and banning of monopoly practises. An unprecedented move, here’s all you need to know about a decision, which is the first comprehensive regulatory framework of its kind in the GCC.
Kuwait Issues Regulations For Food Delivery Apps
As revealed a report of the Gulf News, which quoted the state news agency, KUNA, the Ministry of Commerce and Industry has issued a binding decision, which regulates the aforementioned practices. Reaffirming the government’s commitment to consumer protection, they also show their support for the national commercial sector and the creation of a fair and transparent competitive environment.
Extensive Monitoring Of The Market
The decision was arrived at after following an extensive monitoring and economic analysis of the food delivery market. Through field inspections and studies, monopolistic practices were uncovered, and there was also unfair conduct by some operators that was found. This disrupted competition and harmed the merchants and consumers. So, the framework was developed after a consultation of three months with owners, delivery companies, and electronic platforms.
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Platforms Must Fix Their Fees
Basically, now all the operating food delivery platforms must amend their license activity. This must be to ‘Management of Delivery Services via Electronic Platforms’. It is in line with international classification 532013 within two months of the regulation taking effect. Platforms must also fix their fees and commission charged to the restaurant and ready-made food outlets for a period of three years. This is to ensure there is market stability! Not only this, but any charges discount parallel agreements outside the 2026 fee structure that the companies must submit are prohibited. So service providers have to adopt a single annual tariff that is approved by the ministry, which details fees, commission, calculation, methods and the maximum limit.
In fact, the regulations have also introduced a defined complaint handling and cancellation.
Cover Image Courtesy: Canva Pro/Anson Fernandez Dionisio from Getty Images Pro
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