Cade Reopens Antitrust Probe Into 99Food Over Exclusive Clauses

In a sudden regulatory reversal, the Administrative Council for Economic Defense (Cade) has reopened an antitrust investigation into food delivery platform 99Food, a subsidiary of China’s DiDi Chuxing. The decision by Cade's Tribunal overrides a June 25 ruling by its General Superintendence, which had previously archived the case. The move maintains intense regulatory pressure on Brazil's highly competitive digital delivery sector, signaling to global investors that antitrust scrutiny remains a key hurdle for dominant players.

The antitrust probe was originally triggered by a complaint from Keeta, a rival delivery platform backed by Chinese tech giant Meituan (3690.HK). Keeta accuses 99Food of deploying restrictive "ban" clauses and hefty financial incentives of up to R$ 300,000 to block partner restaurants from working with competing platforms. While the General Superintendence initially dismissed the case on the grounds that 99Food's market share in São Paulo does not exceed 20%, Cade's Tribunal ruled that the delivery market is a highly complex, multi-sided digital ecosystem requiring a much deeper antitrust analysis regardless of market share thresholds.

This regulatory escalation comes amid a broader battle for market share in Brazil, where local giant iFood has historically held a dominant position. The reopening of the probe is seen as a pivotal development for foreign entrants like Meituan's Keeta, which are seeking to carve out market share in major metropolitan hubs. Cade's intervention highlights the regulator's commitment to ensuring a level playing field, potentially reshaping how exclusivity contracts are structured across the entire industry.

The renewed legal battle unfolds against a backdrop of positive momentum in the Brazilian equities market. In recent trading, the Bovespa index rose, with the IBOV up 0.64% to 172,787.62. Major state-backed and financial heavyweights also posted gains, with Petrobras (PETR4) rising 0.34% to 37.96, Vale (VALE3) advancing 0.35% to 78.24, and Itaú Unibanco (ITUB4) ticking up 0.07% to 42.47. Investors will continue to monitor Cade's next steps as the tribunal begins hearing from affected restaurants.