'Exorbitant' commission of food delivery platforms under probe

The Malaysia Competition Commission (MyCC) is investigating complaints of "exorbitant" commission fees imposed by food delivery services and also the price of food and beverages (F&B) imposed on these platforms.

MyCC chief executive officer Iskandar Ismail said the commission and the Domestic Trade and Consumer Affairs Ministry have met with stakeholders including F&B and retail industry players to understand the issues raised by them.

"Based on the series of meetings held, we have identified several concerns and challenges in the industry, in relation to not only competition but also consumerism.

"The way forward for us is to actively engage with the food delivery platform providers.

"In this regard, MyCC is seriously looking into every angle from the perspective of the Competition Act 2010, particularly on the conduct of these food delivery platform companies towards food and beverages industry players, riders, and consumers and whether it raises any competition concern," Iskandar said in a statement.

Food delivery services typically charge a commission for F&B outlets to use their platform. This causes businesses to inflate the price of their products in order to cover the cost.

Iskandar said MyCC is considering all options to address the complaints including invoking enforcement powers under the Competitions Act 2010 and cooperating with the Domestic Trade and Consumer Affairs Ministry for a comprehensive solution.

MyCC says the Competition Act allows action to be taken against a group of major players who abuse their dominant position in the market.

It added that anyone who has complaints about alleged misconduct in this regard can reach out to the commission at complaints@mycc.gov.my or via WhatsApp at +6019 215 2273. - Mkini