Brazil: Injunction against iFood regarding abuse of dominance through exclusivity deals

On 10 March 2021, the General Superintendence of the Administrative Council for Economic Defence Investigation (SG/CADE) announced an injunction against iFood. The preventive measure follows an investigation that was initiated in September 2020 against the food delivery platform, alleged to have abused its dominance in the food delivery market by signing exclusivity deals with restaurants and supermarkets, following a complaint by Rappi, a rival delivery app. Specifically, iFood is alleged to have prevented restaurants and supermarkets from registering themselves with competing food delivery providers, thereby restricting competition. Under the injunction, iFood is prohibited from signing new contracts containing exclusivity clauses and cannot adapt older contracts containing exclusivity clauses. This injunction will remain in force until a final decision is reached in the investigation.