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FeastBump, a local start-up in TODAY’s article “Concerns over exclusive
deals between delivery services and eateries”, 26 August 2016.
For Singapore restaurants to sign exclusive
agreements with these major players, this
has already made it much harder for a small
local start up like FeastBump to succeed and
compete on such an uneven playing field.
SERVICES
CURRENTLY COMPETITIVE BUT EXCLUSIVE
AGREEMENTS ARE POTENTIALLY PROBLEMATIC
CCS investigated an alleged anti-
competitive practice by an online food
delivery provider in Singapore. The
investigation revealed that the online
food delivery provider had entered
into exclusive agreements with
certain restaurants, which prevented
the restaurants from using other
providers’ services.
While competition law in Singapore
does not prohibit businesses from
achieving market power or striving
towards it, businesses with a dominant
market position cannot prevent their
competitors from competing effectively
or shut them out of the market through
exclusive business practices such
as exclusive agreements with their
suppliers or customers. If such conduct
is found to harm competition, CCS can
take enforcement action.
COMPETITION COMMISSION OF SINGAPORE
24