On 8 July 2026, Kuwait’s Minister of Commerce and Industry, issued Ministerial Decision No. 109/2026, introducing a comprehensive regulatory framework governing electronic intermediary platforms and applications for the ordering and delivery of products to consumers. Published in the Official Gazette (Issue 1799) on 12 July 2026, the Decision abrogates the earlier Ministerial Decision No. 10/2026 on restaurant and ready-to-eat food delivery services and represents a significant regulatory intervention into a sector that has become integral to daily life in Kuwait.

Importantly, while the food delivery sector is the primary target, the Decision’s scope extends well beyond restaurants, and applies to all electronic intermediary platforms operating in Kuwait that intermediate purchase orders between licensed clients and consumers. It does not apply to platforms that only sell their own products directly. For restaurants, delivery companies, and consumers alike, this law reshapes the commercial landscape.

Moreover, the Explanatory Memorandum to Decision 109/2026 acknowledges that major delivery platforms have become the “principal—and, in practical terms, potentially the only—channel” through which food establishments can reach consumers. As e-commerce and delivery services have become a dominant pattern in consumer behaviour, a restaurant’s absence from these platforms effectively excludes it from a large segment of the market.

This dynamic has left clients, particularly small and medium-sized businesses, in a weaker bargaining position, with consent increasingly bordering on “adhesion rather than free agreement.” Commissions charged by some platforms had risen to levels that eroded a substantial portion of establishments’ profit margins, threatening the continuity of their businesses. Critically, these burdens were often reflected in higher prices borne by consumers.

The Decision draws its legal authority from, among other legislation, Kuwait Decree-Law No. 10/1979 on the Supervision of Trade in Goods, Services, and Crafts, Kuwait Decree-Law No. 10/2026 Regulating Work in the Digital Commerce Sector, and Kuwait Law No. 39/2014 on Consumer Protection. The intervention is expressly aligned with Kuwait Vision 2035.

The Commission Cap: A Game-Changer for Restaurants

Perhaps the most important provision is the cap on platform fees. Under Article 7 of the new Decision, the total amount a platform may charge a restaurant or food establishment, including commissions, advertising fees, featured placement charges, ranking priority, delivery service fees, and any other consideration, shall not exceed 17% of the order value (before the consumer’s Delivery Fee) per order. This is an all-in cap, and there is no scope for platforms to layer additional charges on top.

Where the client handles its own delivery, the cap drops to 10%. Platforms are expressly prohibited from requiring clients to use the platform’s delivery service or penalising them for choosing self-delivery.

The consumer-facing delivery fee is capped at KWD 1 per order. Where a client self-delivers, that Delivery Fee must be paid in full to the Client, with no platform deduction permitted.

The Explanatory Memorandum emphasises that this commission cap is not price-fixing, and parties remain free to agree on any rate below the cap. The purpose of this cap is to set a ceiling that prevents exploitative pricing while preserving contractual freedom.

Anti-Exclusivity, Fair Dealing, and Price Parity

The Decision also notably introduces protections against platform dominance. Under Article 4.9, platforms are prohibited from:

• Requiring exclusive arrangements with any client;
• Preventing clients from offering their products at lower prices on other platforms or through their own outlets;
• Restricting a client’s freedom to set prices outside the platform.

A platform may not respond to a client’s exercise of these rights by reducing the client’s visibility on the platform, denying access to delivery representatives, increasing commissions, delaying payments, or denying benefits. Any such contractual terms are declared null and void.

Platforms must also ensure that promotional offers apply equally across comparable categories of clients, preventing sweetheart deals that disadvantage smaller operators. Algorithms that cause unfair discrimination between clients constitute an explicit violation under Article 4.12. Furthermore, platforms cannot refuse to contract with, terminate, or restrict a client without providing objective, lawful, and disclosed justification.

Additionally, under Article 9.8, platform prices must match in-store prices, and clients may not charge consumers more through the platform than they would in their own physical outlets. The only exception is for approved promotional offers. This provision is designed to prevent the practice of inflating platform prices to absorb commission costs, which is a practice that ultimately harms consumers.

Advertising Transparency & Gratuity Protection

The Decision mandates full transparency in how listings are displayed to consumers. Under Article 5.7, platforms must clearly label paid or sponsored placements using designations such as “Advertisement,” “Paid,” or “Sponsored” so consumers can distinguish paid rankings from organic ones. Claims like “Best Seller” or “Most Popular” must be backed by genuine, objective data, and factors that determine both organic and paid rankings to consumers must be disclosed. These provisions target a common concern that platforms may prioritise listings based on commercial arrangements rather than consumer interest, without disclosing this to users.

Article 6.3 also addresses consumer gratuities (tips), which must be transferred to delivery representatives in full. Platforms are expressly prohibited from deducting, withholding, or reallocating any portion of tips. Any contractual provisions to the contrary are declared null and void.

What Delivery Platforms Must Do

For companies operating delivery platforms, the compliance obligations are substantial:

• Written contracts mandatory: All terms, commissions, and conditions must be set out in a written, signed contract. Any fees not contained in the contract are unenforceable (Article 4.4).
• 14-day payment settlement: Platforms must settle amounts owed to clients within 14 days of order fulfilment (Article 4.7).
• Free financial records: Platforms must provide clients with free financial records and reports enabling them to track orders and payments (Article 4.5).
• Consumer data sharing: Platforms must share aggregated consumer statistical data with clients upon request, within one week and free of charge (Article 4.3).
• Post-termination data extraction: Upon termination of the contractual relationship, clients have the right to extract their data from the platform in a clear, usable format (Article 4.6).
• 30-day advance notice: Platforms must provide at least 30 days’ advance written notice before making material amendments to contract terms, and clients have the right to terminate in response (Article 4.11).

Consumer Protections

The Decision establishes a consumer protection framework. The Decision gives consumers a 14-day right to return products, provided they remain in their original condition. The right is subject to important exceptions for products that have been used, custom or bespoke items, perishables, and pharmaceuticals, although the pharmaceutical exception does not apply where there has been a dispensing error or the product shows visible damage or has expired. Consumers are also entitled to a full refund where delivery is delayed to the point that the product becomes unusable.

Refunds may not be confined to platform vouchers or credits; they must be paid in a form that includes the delivery fee and any gratuity.

With respect to complaints, platforms must respond within 48 hours and, where an order is not fulfilled, provide compensation within seven working days.

The Decision also requires an electronic invoice in Arabic to be issued immediately upon ordering, with the relevant records retained for five years.

Cybersecurity and Data Protection

The Decision takes a targeted approach to cybersecurity and data protection. Platforms must limit their collection of personal data to what is necessary to operate the service, notify the Ministry of Commerce and Industry and affected individuals of a data breach within three days, comply with the requirements of the National Cybersecurity Authority, and treat platform data as confidential, with disclosure restricted accordingly.

For businesses operating in data-sensitive sectors, these obligations warrant particular attention and should be considered alongside Kuwait’s broader cybersecurity and data protection framework.

Liability Allocation

Article 11 allocates liability clearly among the parties:

• Platform system failures: The platform bears liability for any failure in its systems or technology.
• Delivery delays: The platform is responsible for delivery delays, unless the Client caused the delay.
• Preparation and packaging errors: The Client bears responsibility for errors in product preparation or packaging.

This tripartite allocation provides welcome certainty for all parties and should reduce disputes about responsibility when things go wrong.

Enforcement and Penalties

Article 15 establishes a graduated administrative penalty regime. For platforms, the sequence runs from a warning to administrative closure, which may include blocking access to the platform, and ultimately to permanent cancellation of the licence together with permanent blocking of the platform. Clients face a warning followed by closure of their premises or suspension of the relevant activity, and, for more serious or persistent violations, cancellation of the licence.

The Ministry of Commerce and Industry will also convene a dedicated committee to examine disputes between platforms and clients, with seven working days to issue its recommendations. That mechanism offers an alternative to court proceedings and may be particularly valuable to SMEs that lack the resources to pursue litigation.

Compliance Deadline

Existing licensed platform companies must regularise their status, including amending their licensed activity description, before 1 September 2026. Existing contracts must also be amended to comply with the new framework by the same date. The sole exception applies where the agreed commission already falls within the new cap, in which case the contract may run to its natural expiry.

With the compliance deadline already passed, businesses should act promptly to review existing arrangements and ensure full compliance.

For advice on how these new rules may affect your organisation, contact GLA & Co.

Authors: Asad Ahmad, Head of Antitrust & Competition, Khaled Al Makhezeem, Associate, and Liana Rashed, Trainee Lawyer.