The National Competition Authority (ANC, for its acronym in Spanish) has announced that it has initiated an ex-officio investigation into the market for digital intermediation platforms for the purchase and delivery of restaurant products – known as food delivery platforms – in Argentina.

The investigation focuses on two types of commercial practices. On the one hand, the possible imposition of most-favoured-nation (MFN) clauses, through which the platforms would restrict restaurants’ freedom to set prices for their products on other sales channels. On the other hand, the alleged implementation of exclusivity agreements, which would require restaurants to operate solely through a specific platform.

Both practices could raise barriers to entry for new competitors and prevent price competition between channels. The conduct is preliminarily deemed to fall under Sections 1 and 3 of Act No. 27.442 on the Defence of Competition (LDC, for its acronym in Spanish).

The investigation stems from the monitoring of digital markets and the gathering of information at both local and international levels. The opening of the investigation does not prejudge the final outcome or the liability of the companies concerned.

The LDC prohibits conduct by economic operators which --by taking advantage of a dominant position in a market-- limits, restricts or distorts competition. Such conduct may result in fines of up to 30% of the annual turnover of the companies involved.