The Competition Commission (CCS) has investigated an alleged anti-competitive practice by a Singapore online food-delivery service.

Launched after a complaint, an investigation revealed that the delivery company had entered into exclusive agreements with certain restaurants, preventing them from using other providers’ services.

CCS has closed its investigation, saying competition has not been harmed. However, the commission will continue to monitor the market as such exclusive agreements could prove problematic in future.

However, after starting its investigation, CCS says one delivery provider stopped using exclusive agreements with restaurants, while others have been using such agreements to gain market share.

Its investigation found that the industry is competitive, with the number of delivery providers expanding “significantly” over the past year.

“The online food delivery industry is currently vibrant with new entrants competing aggressively and market shares changing significantly,” says CCS chief executive Ton Han Li.

“In the event of an online food-delivery provider becoming dominant, such exclusive agreements risk infringing competition law as it could affect the competitive state of the market. Instead of relying on exclusive business practices, businesses should compete on merit, leading to a more vibrant market with more choices for restaurants and consumers.”

He says CCS welcomes feedback from restaurants and other industry stakeholders to help it assess developments and practices in the industry.