Brazil's Cade Finds Evidence iFood Violated Exclusivity Agreement, Grants 15 Days for Response

The General Superintendence of Brazil's Administrative Council for Economic Defense (Cade) has identified evidence that iFood, the country's largest food delivery platform, violated a 2023 agreement regarding exclusivity contracts with partner restaurants. Consequently, Cade has granted the company 15 days to provide explanations. The investigation reveals that iFood allegedly retaliated against restaurants joining competing platforms, such as 99Food, by reducing their visibility on the app and lowering their revenue. Additionally, technical notes include WhatsApp screenshots showing iFood employees pressuring partners to maintain price parity with competitors, a practice prohibited by the prior settlement. Cade describes the evidence as abundant and linked to efforts to maintain market dominance against new challengers. iFood acknowledged the technical note and reaffirmed its commitment to compliance, expressing confidence in clarifying the points raised. This development marks a new phase in the ongoing antitrust probe, which may lead to the case being forwarded to Cade's court if the explanations are deemed insufficient. The situation highlights intensifying regulatory scrutiny over anti-competitive practices in Brazil's digital marketplace sector.