Austria's BWB investigates Foodora and Lieferando for market abuse

The Austrian Federal Competition Authority (BWB) has launched an investigation into the food delivery market following a sector study. The probe focuses on potential abuse of dominant market positions by major players Foodora and Lieferando.

According to the BWB, Foodora holds a 50 to 60 percent market share, primarily in Vienna, while Lieferando holds 40 to 50 percent across the rest of the country. The investigation highlights concerns regarding high barriers to entry for new competitors and the growing dependence of restaurants on these platforms, which now account for 25 to 30 percent of some businesses' total revenue.

Specific practices under scrutiny include exclusivity agreements with large restaurants, best-price clauses that prevent vendors from offering lower prices on their own channels, and questionable contractual terms such as penalty fees. The BWB noted that while exclusivity agreements are not inherently illegal, they become problematic if they are used by dominant firms to restrict competition or impede market access. Foodora has stated it is cooperating fully with the authorities and will review the findings.