iFood, the Brazilian unit of Prosus NV, filed a complaint against Chinese company Meituan with the Administrative Council for Economic Defense (Cade), the body responsible for defending competition in Brazil, accusing its competitor of practicing artificially low prices to eliminate competition. iFood is asking the antitrust authority to investigate the unit economics of the operations of Keeta, a Meituan company, according to documents seen by Bloomberg.
Keeta arrived in São Paulo nearly a year ago and has been aggressively seeking to gain market share. Both companies offer prepared food delivery services through digital platforms. iFood's market share was estimated at around 75% last year, before Keeta's arrival.
The complaint highlights the intensification of competition for web-based services in Brazil. In the document sent to Cade, iFood accuses Keeta of using the cash reserves of its parent company to subsidize its operations in Brazil, allowing the company to operate at artificially low prices that established competitors cannot match.
