Delivery Apps: Proposal to Regulate Commissions

In Costa Rica, a bill to give the Ministry of Economy, Industry and Commerce the power to determine the maximum commissions and amounts that may be charged by digital platforms such as UberEats, Glovo, Rappi and Hugo was presented.

Wednesday, August 12, 2020

This bill arose in a context of booming demand for fast food with home delivery, and a complicated relationship between restaurants and delivery applications.

See "Fast food: Growing interest in the region"

The initiative called "Law for the Regulation of Fees Charged by Digital Delivery Service Platforms", presented on August 10, 2020 by MP Paola Vega, aims to protect the commercial sector from abusive fees charged by digital delivery service platforms, according to the authors of the legislative project.

You may be interested in "Geomarketing and Decision Making"

In a statement from the Citizen Action Party (PAC), Vega explained that "the restrictions on public attention give the platforms a great advantage. But unfortunately, they have abused the situation and even charge commissions of up to 30% on each purchase and up to 25% for delivery. Many people who are struggling to get ahead with their business also have to deal with these totally abusive and unfair percentages."

The project proposes that the commissions charged by the digital platforms for services to businesses, may not be more than 15% on the sale. During this period, the Ministry of Economy, Industry and Commerce, Chamber of Commerce, Chamber of Restaurants should conduct periodic reviews of the fees to determine and the MEIC will publish the maximum fees periodically, explains the document published by the PAC.

Vega added that "... what we want is to give the commercial sector some breathing space to improve its cash flows and help in its economic recovery. Many restaurants and shops will not be able to survive without facing unfair clauses such as those established by a handful of companies participating in the digital delivery platform market. In this way, the delivery companies also present high commissions for the services they perform."

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