Introduction

The rapid growth of digital food delivery platforms in Kuwait has transformed consumer behaviour and reshaped the relationship between restaurants, delivery services, and consumers. Recognizing the need for regulatory oversight in this evolving sector, the Ministry of Commerce and Industry issued Ministerial Decision No. 10 of 2026, establishing a comprehensive framework governing food delivery platform and their commercial relationships. This article examines the key provisions of the Ministerial Decision, its alignment with Kuwait’s competition law framework, and the practical compliance steps that platform operators must consider.

Scope and Application

The Ministerial Decision applies to service providers operating electronic platforms-whether mobile applications or websites-that facilitate the ordering of ready-made foods from licensed establishments, including restaurants, cafés, bakeries, and juice shops. The regulation governs the tripartite relationship between platforms, restaurants (referred to as “clients”), and consumers, establishing obligations for each party while designating the platform as the central point of accountability.

Notably, the regulation does not apply to retail or wholesale food trade, cooperative societies, pharmacies, or establishments that are not engaged in preparing foods ready for direct consumption. This targeted scope ensures that the regulation addresses the specific dynamics and competition concerns arising in the digital intermediary market.

Alignment with Competition Law No. 72 of 2020

The Ministerial Decision is explicitly designed to complement and reinforce Kuwait’s Competition Protection Law No. 72 of 2020, which prohibits anti-competitive agreements, abuse of dominant position, and practices that distort free competition. Several provisions of the Ministerial Decision directly implement principles established under the Competition Law and the Competition Protection Agency’s Guideline Manual for the Consumer Delivery Services Sector.

First, the prohibition on exclusive dealing arrangements under Article 4(7) of the Ministerial Decision addresses concerns about vertical restraints that could foreclose market access. Under Article 7 of the Competition Law, vertical agreements that restrict or prevent competition are prohibited. The Guideline Manual specifically identifies exclusive contracts-where platforms require restaurants not to deal with competitors-as a potentially anti-competitive practice. By declaring any exclusivity clause void, the Ministerial Decision ensures that restaurants retain the freedom to list on multiple platforms, thereby preserving competitive market dynamics.

Second, the prohibition on unjustified refusal to contract under Article 3(8) directly addresses abuse of dominant position concerns. Article 8 of the Competition Law prohibits dominant firms from engaging in practices that prevent or restrict competition, and the Guideline Manual identifies unjustified refusal to deal as an example of such abuse. The Ministerial Decision requires platforms to provide legitimate, objective, and disclosed justifications for any refusal to contract or termination of a commercial relationship, preventing arbitrary exclusion of market participants.

Third, the regulation’s anti-discrimination provisions align with the Guideline Manual’s identification of discriminatory treatment as an abuse of dominant position. Platforms are prohibited from using algorithms or technical mechanisms to favor certain restaurants, and promotional offers must be made available equally to all clients or similar categories. These provisions address concerns specific to digital markets, where platform operators may leverage their intermediary position to preference affiliated or favored businesses.

Fourth, the transparency and fee disclosure requirements operationalize the Guideline Manual’s emphasis on transparency in commercial dealings. Platforms must submit their complete fee schedules to the Ministry annually, and all fees must be documented in written contracts. The three-year fee freeze provision further protects restaurants from unexpected cost increases, though platforms retain the ability to compete by offering lower fees.

The Role of the Guideline Manual

The Competition Protection Agency’s Guideline Manual for the Consumer Delivery Services Sector serves as a bridge between the Competition Law and the Ministerial Decision. The Manual identifies specific practices of concern in the delivery platform market, including predatory pricing, most-favored-nation clauses, self-preferencing, and product bundling. The Ministerial Decision transforms many of these concerns into binding regulatory requirements, creating a sector-specific compliance framework that supplements the general prohibitions of the Competition Law.

Importantly, Article 3(7) of the Ministerial Decision explicitly requires platforms to comply with the Guideline Manual, elevating its status from advisory guidance to a mandatory compliance standard. This integration ensures regulatory coherence and provides platforms with clear direction on expected conduct.

Consumer Protection Dimensions

While primarily focused on competition and commercial relationships, the Ministerial Decision also incorporates significant consumer protection measures. Platforms are designated as guarantors to consumers for order fulfillment, obligated to compensate consumers for any deficiencies within seven working days. This liability allocation simplifies consumer recourse while preserving the platform’s right to seek reimbursement from the responsible party.

Additionally, platforms must maintain transparent pricing, clear cancellation policies, accessible customer service, and a robust complaints system. These requirements align with Consumer Protection Law No. 39 of 2014 and ensure that competition in the market ultimately serves consumer welfare.

Compliance Considerations for Platform Operators

Digital delivery platforms operating in Kuwait should undertake several steps to ensure compliance with the new regulatory framework. First, operators should conduct a comprehensive review of existing contracts with restaurants to identify and remove any exclusivity clauses, undisclosed fees, or terms that may conflict with the regulation. All commercial terms must be documented in written agreements signed by both parties.

Second, platforms should establish internal processes to ensure timely submission of annual fee schedules to the Ministry and to track the three-year fee lock periods for each client relationship. Systems should be implemented to prevent unauthorized fee increases during the lock period.

Third, operators should review their algorithms and technical systems to ensure that ranking, display, and promotional mechanisms do not create unjustified preferences among restaurants. Documentation of objective criteria used in any differentiation will be essential for demonstrating compliance.

Fourth, platforms should establish procedures for responding to restaurant data requests within the mandated one-week timeframe and ensure that consumer and commercial data is handled in accordance with confidentiality requirements.

Finally, operators should implement a compliant complaints system that enables electronic submission, tracking, and resolution of complaints, with records retained for at least six months.

Conclusion

Ministerial Decision No. 10 of 2026 represents a significant regulatory development for Kuwait’s digital food delivery sector, establishing clear rules that promote fair competition, protect restaurants from exploitative practices, and safeguard consumer interests. By aligning closely with Competition Law No. 72 of 2020 and the Competition Protection Agency’s Guideline Manual, the regulation creates a coherent framework that addresses the unique competition challenges of digital platform markets. Platform operators should act promptly to review their practices and implement necessary compliance measures to avoid warnings, administrative closure, license cancellation, or financial penalties under the applicable laws.

Authors: Asad Ahmad, Partner and Head of Antitrust & Competition