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Thailand Warns Food Delivery Apps Of Overcharging During Covid-19

By  |  April 1, 2020

Thailand’s anti-monopoly watchdog warned food delivery platforms on Wednesday, April 1, they could face fines for charging higher commissions as online food orders surge amid the coronavirus outbreak. 

The announcement comes after malls and restaurants were ordered to close except for take-out orders in late March. Food delivery platforms have seen a spike in orders, with operators like Foodpanda seeing orders rise 20 times from a year ago.

Thailand has reported 1,771 confirmed cases and 12 deaths.

There have been complaints that food delivery platforms have increased their service fees for restaurants from 20%, to rates of up to 40%, the Office of Trade and Competition Commission (OTCC) secretary-general Somsak Kiatchailak said, without naming any companies. 

Platforms are also charging restaurants fees for marketing and advertising, he said. Unfair commercial activity that causes damage to consumers will face a penalty of 10% of the year’s revenue, the OTCC said.

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