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Small businesses revolt, Ombudsman finds them right: Commission brake on food delivery platforms

The Ombudsman Institution has recommended that the Ministry of Trade impose a limit on the high commission rates charged to small businesses by online food delivery platforms.

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Small businesses revolt, Ombudsman finds them right: Commission brake on food delivery platforms

The Ombudsman Institution (KDK) has stated that the high commission rates charged to businesses by online food delivery platforms should be reduced to a reasonable level and has issued a recommendation to the Ministry of Trade on this matter. The KDK also suggested that the Competition Authority investigate whether these platforms are abusing their market dominance.

In an application to the KDK, a business owner stated that food delivery platforms demand a 32 percent commission and delivery fees, and that this rate rises to as much as 60 percent when additional costs are included. The business owner expressed that these high commissions place a heavy burden on small enterprises and that this situation should be audited transparently.

Finding the business owner's complaint justified, the KDK emphasized that a reasonable upper limit should be placed on commission rates. It was also pointed out that commission rates in Turkey are above the European average.

In its decision, the KDK stated that oversight mechanisms for online ordering platforms must be activated to ensure the commercial sustainability of small businesses and to protect consumer welfare. Noting the public interest, the institution highlighted the importance of introducing a cost-based ceiling on commission rates to establish a fair competitive environment.

In conclusion, the KDK stated that a balance between free market rules and public interest must be maintained, and that in this context, reducing the commission rates applied by platforms to a fair level would restore the balance of interests between the parties.


News Source: 12punto

Ombudsman Institution small business