In February 2023, online food delivery platform, iFood, agreed behavioural commitments with Brazil’s competition authority (Conselho Administrativo de Defesa Econômica, “CADE”) to conclude an inquiry into its exclusivity agreements with affiliated restaurants.
After CADE’s almost 2.5 year-long investigation on whether iFood’s contracts with restaurants could be deemed anti-competitive, iFood agreed to a set of behavioural commitments on new exclusivity agreements, while preserving its existing agreements.
Compass Lexecon experts Jorge Padilla and Helder Vasconcelos submitted to CADE an expert opinion titled “Theory and Evidence of Exclusive Dealing in Online Food Delivery Markets”. In their opinion, the Compass Lexecon experts evaluated whether exclusivity contracts between online food delivery platforms and restaurants are likely to be pro-competitive or anti-competitive. They also assessed the circumstances of the Brazilian online food delivery market with a focus on iFood’s market position, as well as whether prohibiting iFood from entering into exclusivity arrangements would be beneficial to consumers.
In addition to the expert opinion, the Compass Lexecon team advised iFood during different stages of the investigation. In particular, they reviewed economic arguments and agency considerations in cases outside Brazil, in which exclusivity clauses in contracts were examined.
The team was led by Jorge Padilla and Helder Vasconcelos and included Angelos Stenimachitis and Alexandro Ruiz Perez. Compass Lexecon worked alongside Marcio Dias Soares, Amadeu Ribeiro and the team of Mattos Filho, as well as with LCA Consultores.