The Austrian Federal Competition Authority has released the findings of its comprehensive industry study on online food delivery platforms, revealing significant market concentration and potential competition issues. What began as a response to market indications, media coverage, and discussions across EU authorities in March 2023 has culminated in a formal investigation into suspected abuse of market power. Digital platforms have reshaped restaurant sales channels, particularly since the pandemic, but the authority warns that entrenched dominance risks disrupting the healthy balance of competition.
Data collected from established giants like Foodora and Lieferando, alongside 23 other ordering services and a survey of roughly 2,500 Viennese restaurants, paints a clear picture of strong platform dependency. Online delivery now accounts for 25% to 30% of average revenue for surveyed restaurants in Vienna. While the recent entry of Wolt in 2023 introduced a new player to the landscape, Foodora and Lieferando maintain a firm grip on the market, holding combined shares between 90% and 100%. Foodora commands a leading position in Vienna, whereas Lieferando shows greater strength across the rest of Austria.
The report highlights severe barriers to entry for newcomers, driven by high startup costs, competitive behaviors from incumbents, and strong indirect network effects. As restaurants feel the need to secure top visibility on these delivery applications, many have shifted advertising budgets away from general search engines and social media directly into the platforms. This shift creates a compounding loop: restaurants lose independent sales channels, increase their marketing expenditures on the platforms, and ultimately grow even more dependent on them.
Key competitive concerns raised by the authority center on exclusivity agreements, pricing restrictions, and unilateral contract terms. The investigation found cases where high-volume restaurants received favorable terms in exchange for exclusivity, or where participation in lucrative promotions required pausing service on rival apps. Furthermore, contract terms including narrow best-price clauses and steep cancellation penalties of up to ten euros for minor delays have drawn criticism from business owners, one of whom described feeling like an employee rather than an active partner.
Communication deficiencies also surfaced, with nearly a third of surveyed establishments reporting poor responsiveness from platform support. The authority noted that inadequate contact mechanisms could constitute a breach of the European Digital Services Act, directing affected businesses to file complaints with KommAustria. The authority’s ongoing formal investigation aims to thoroughly assess these practices, emphasizing that the presumption of innocence applies while proceedings remain underway.
