The Norwegian Competition Authority has announced (10 December) it will not extend remedial measures imposed on Foodora, signaling improved competition in the food ordering platform market.
The measures, adopted in 2021, required Foodora to cease exclusive agreements and other exclusionary practices with restaurants due to concerns over abuse of a dominant position.
“During the period these measures have been in place, competition has significantly improved, particularly with the growth of Foodora’s competitor, Wolt,” said Hanne Dahl Amundsen, Director at the Competition Authority. However, Foodora must still avoid exclusivity agreements that harm competition, as such practices remain illegal under the Competition Act.
The measures aimed to ensure restaurants could collaborate with multiple platforms, lowering barriers to entry for competitors. Reports from an appointed compliance manager confirm the measures have worked effectively, with Foodora eliminating written exclusivity clauses and revising its agreement standards. Competitors, including Wolt, have gained greater access to restaurants, fostering a more competitive landscape.
Since January 2022, Wolt has expanded from six locations to over 50 across Norway, challenging Foodora’s dominance. The market now features a balanced presence of Foodora, Wolt, and smaller players, with market leadership varying by region.
The remedial measures will officially conclude on January 17, 2025. However, the Competition Authority will continue monitoring the sector and encourages tips about potential violations by Foodora, Wolt, or others.
Source: https://konkurransetilsynet.no/bedre-konkurranse-i-markedet-for-matbestillingsplattformer/
