Kuwait Cracks Down on Food Delivery Giants, Imposes First GCC-Wide Fee Caps
In a landmark move to rein in the rapidly growing food delivery sector, Kuwait has enacted the Gulf Cooperation Council's first comprehensive regulatory framework, imposing strict caps on platform fees and commissions. The decision follows a government investigation that revealed widespread monopolistic behavior and unfair tactics disrupting market competition.
The Ministry of Commerce and Industry issued Ministerial Decision No. 10 of 2026 after a three-month consultation with stakeholders, including platform operators, restaurant owners, and logistics firms. The new rules mandate a fixed fee structure for three years, prohibit exclusive agreements, and require full transparency in pricing. Companies must also reclassify their licenses under "Management of Delivery Services via Electronic Platforms" within two months.
"This isn't just about lowering costs—it's about resetting the balance of power," said a ministry spokesperson. "Our analysis showed certain platforms were exploiting their market position with arbitrary commission hikes, hidden fees, and algorithms that unfairly prioritized partners. This framework protects small businesses and ensures consumers aren't ultimately footing the bill for anti-competitive practices."
The regulations introduce a defined penalty system, ranging from warnings to license revocation, and require all fees to be documented in clear, standardized contracts. Service providers must submit an annual tariff for ministry approval, locking in prices for the year.
Industry Impact & Regional Precedent
The move is expected to significantly alter the economics of Kuwait's food delivery market, which has seen rapid expansion in recent years. By stabilizing costs for restaurants—especially small and medium enterprises—the government aims to foster a more predictable business environment. Observers suggest the policy could set a precedent for other GCC nations grappling with similar market concentration in the digital platform economy.
Voices from the Community
Ahmed Al-Farsi, Restaurant Owner in Kuwait City: "Finally, some relief. The commissions had become unsustainable—sometimes over 30%. This gives us breathing room to plan and invest again."
Layla Hassan, Consumer Rights Advocate: "Transparency is key. Hidden fees and manipulated listings mislead consumers. This is a strong step toward fair digital commerce."
Markus Reed, Regional Director for a Global Delivery Platform (speaking on background): "While we support fair regulation, fixed tariffs for three years ignore market dynamics. This could stifle innovation and service quality in the long run."
Sarah Chen, Tech Policy Analyst (sharper tone): "This is a band-aid on a bullet wound. These platforms have operated like cartels for years, squeezing every dirham from local businesses. The caps should be tighter, and the penalties harsher. Why wait for more damage?"
The framework is now legally binding, with the ministry overseeing its implementation. All licensed delivery platforms must comply with the new operational and financial requirements within the stipulated deadlines.