Ministry of Commerce and Industry Resolution No. 109 of 2026 Issuing the Regulation Governing the Sector of Intermediary Electronic Platforms and Applications for the Display, Ordering and Delivery of Products to Consumers

Ministry of Commerce and Industry Resolution No. 109 of 2026
Issuing the Regulation Governing the Sector of Intermediary Electronic Platforms and Applications for the Display, Ordering and Delivery of Products to Consumers

Article One

The provisions of the Regulation Governing the Sector of Intermediary Electronic Platforms and Applications for the Display, Ordering and Delivery of Products to Consumers, attached to this Resolution, shall be applied.

Article Two

Every company licensed to launch and operate an intermediary electronic platform for the display, ordering and delivery of products to consumers shall regularise its status in accordance with the provisions of the Regulation attached to this Resolution, by amending the activity of its licence to “Management of Delivery Services via Electronic Platforms” in accordance with the approved international classification No. (532013) for this activity, as a digital intermediation activity within the sector of administrative service activities, business support and related services, before 1 September 2026.

Article Three

Every contract concluded between the Service Provider and the Client as of the date of issuance of this Resolution shall be subject to the provisions of the Regulation attached to this Resolution. As for existing contracts in force concluded before the date of its issuance, their parties shall regularise their status by amending such contracts in conformity with the provisions of the Regulation attached to this Resolution before 1 September 2026.
By way of exception from the provision of the preceding paragraph, existing contracts in force in which the agreed commission does not exceed the maximum limit prescribed in Article (7) of the Regulation attached to this Resolution shall continue to produce all their legal effects in accordance with their contractual terms until the date of their expiry.

Article Four

The Service Provider licensed by the Ministry shall comply with the Guidelines attached to this Resolution concerning the sector of consumer order delivery services via smart platforms and applications, as approved by the Competition Protection Agency by Resolution No. (1) of 2026 referred to above.
The Guidelines shall be deemed an integral part of this Resolution with respect to competition controls and prohibited practices, without prejudice to the Service Provider’s obligation to observe the maximum commission and the delivery fee prescribed under the provisions of the Regulation attached to this Resolution.

Article Five

Whoever violates the provisions of the articles of this Resolution shall be subject to the violations and penalties set out in Article (15) of the Regulation attached to this Resolution.

Article Six

Ministerial Resolution No. (10) of 2026 Issuing the Regulation Governing the Delivery of Restaurant and Ready-Made Food Orders is hereby repealed, as is every resolution or provision that contravenes the provisions of this Resolution and its attached Regulation.

Article Seven

The competent authorities, each within its own competence, shall implement this Resolution, which shall be published in the Official Gazette and shall come into force from the date of its issuance.

Regulation Governing the Sector of Intermediary Electronic Platforms and Applications for the Display, Ordering and Delivery of Products to Consumers

Chapter One – Definitions

Article 1

In the application of the provisions of this Regulation, the following words and expressions shall have the meanings assigned to each of them, unless the context of the text requires otherwise:
1- The Ministry: the Ministry of Commerce and Industry.
2- Service Provider: every company licensed to launch and operate an electronic platform, whether through a smart application or a website, which undertakes the marketing of the products offered through it and acts as a technical intermediary between consumers and the Client, enabling the consumer to submit purchase orders to it by electronic means, and which organises the ordering and payment process and coordinates with the Client or the delivery agents to deliver the order to the consumer, in return for an agreed commission or fee.
3- Consumer: every natural or juristic person who deals with a Service Provider subject to the provisions of this Regulation and orders, through its platform, products offered through it for consideration for the purpose of consumption, without intending to resell or trade in them.
4- Client: every natural or juristic person legally licensed to carry on its activity who offers its products or services through the electronic platform of the Service Provider and concludes an agreement with it to benefit from its services, whether in respect of displaying or marketing its products through the electronic platform, receiving and executing consumers’ orders, or any other services made available by the Service Provider in accordance with the terms of the contract.
5- Delivery Agent: every licensed natural or juristic person contracted with the Service Provider or with the Client who undertakes the collection of orders and their delivery to the consumer.
6- Order: every purchase of products by the consumer made through the electronic platform, including the details of the commodity, its value, the means of payment, the place of delivery and any other conditions relating to it.
7- Order Value: the total prices of the products ordered by the consumer at the price announced on the platform, excluding the delivery fee or any other fees or amounts.
8- Commission: every financial consideration – whatever its name, form, method of collection or basis of calculation, whether calculated per click or per impression, as a fixed amount per order, as a percentage of the order value or on any other basis, whether or not linked to the completion of an actual sale, or in the form of fixed or variable fees, subscriptions, percentages or any other financial consideration – charged by the Service Provider to the Client in return for its services, including display, advertising, marketing, promotion, featured or paid visibility, ranking priority or any similar services, in accordance with the agreement concluded between them and without contravening the provisions of this Regulation.
9- Delivery Fee: the unified fixed amount borne by the consumer in return for delivering the order to him, as determined by this Regulation, which shall not be included in the base for calculating the fees due from the Client.
10- Tip: every amount paid voluntarily by the consumer, whether through the electronic platform or directly to the delivery agent, at the time of the order or after its delivery, in addition to the agent’s basic wage.
11- Competent Authorities: the Ministry and the regulatory authorities of the State competent to license, regulate or supervise some of the activities or business set out in this Regulation, each within its legally prescribed competence, including – by way of example and not limitation – the Ministry of Interior, the Ministry of Health, the Kuwait Municipality, the Kuwait Fire Service Directorate, the Public Authority for Communications and Information Technology and other relevant authorities.
12- Data: every piece or set of information of a personal, commercial, operational, technical or statistical nature relating directly or indirectly to the consumer, the Client, the delivery agent, orders, operations or transactions connected with the activity of managing delivery services via electronic platforms.
13- Licence: the approval issued by the Ministry and the competent regulatory authorities, each within its competence, to carry on the activities set out in this Regulation in accordance with the provisions of the laws, regulations and resolutions governing them.

Article 2

Scope of Application

The provisions of this Regulation shall apply to all intermediary electronic platforms and applications that carry on their activity within the State of Kuwait and that act as intermediaries in concluding purchase orders for products or services between the Client and the consumer, undertake or manage the collection of the order value from the consumer, and coordinate with the Client or delivery agents to deliver the order to the consumer. They shall also apply to every Client that offers its products or services through such platforms and to the consumers dealing with them, whatever the Client’s activity or the type of its products or services, provided that it is legally licensed to carry on its activity.
The application of the provisions of this Regulation shall be limited to regulating the relationship between the Service Provider and each of the Client and the consumer, the commission and delivery fee charged by the platform and the practices prohibited to it, without prejudice to the competence of the Competent Authorities to license and supervise such activities, and without prejudice to any prohibition or restriction imposed on the delivery of certain goods under the laws and resolutions in force.
The provisions of this Regulation shall not apply to platforms or applications that do not carry on an intermediation activity and whose activity is limited to offering their own products or services directly without offering the products of third parties.

Chapter Two – Obligations of the Service Provider

Article 3

General Obligations of the Service Provider

The Service Provider shall:
1- Carry on its activity in accordance with the licences issued by the Competent Authorities.
2- Clearly disclose its identification details, its means of contact and its use and privacy policy.
3- Not contract with any natural or juristic person to carry out the delivery of products of the activities covered by the Regulation, or to market them, through the electronic platform except after verifying that such person is licensed by the Competent Authorities to carry on the activity, and in accordance with the legislation in force.
4- Not modify the Client’s prices or activate its special offers on the platform except after ascertaining that the Client has obtained the necessary approvals from the Ministry or the Competent Authorities, and in accordance with the laws and resolutions in force.
5- Observe the rules of confidentiality of the data relating to consumers, the Client and delivery agents, and not collect, retain or process any data except to the extent necessary to operate the service and in accordance with the legislation and resolutions in force, without prejudice to the Client’s right to obtain the aggregated statistical data prescribed in this Regulation.
6- Not use or disclose data except for purposes connected with providing the service, or as expressly permitted by this Regulation, or at the request or with the permission of the judicial or security authorities or the Competent Authorities, and in accordance with the laws and resolutions in force.
7- Take the technical measures necessary to prevent the misuse of data, its breach or unauthorised access to it.
8- Strengthen the cybersecurity of the platform in accordance with international best practices and standards, comply with what the Competent Authorities issue in this regard and with what is issued by the National Cyber Security Center, and ensure prompt handling of any incident or breach so as to guarantee that the platform returns to its normal operation as soon as possible.
9- If the platform is subject to a breach, it shall notify the Ministry and those affected by the breach within three days from the date of its becoming aware thereof, clarifying the scope of the breach, its effects and the measures taken to address it. Such notification shall not relieve the platform of its liability towards the beneficiaries of its services, and the platform shall comply with what is issued by the Competent Authorities in this respect.
10- Comply with the Guidelines referred to in Article Four of the Resolution, within the limits of what is stated therein.
11- The Service Provider is prohibited from refusing to contract with any Client, terminating its contract or restricting dealings with it, wholly or partially, without a legitimate objective justification disclosed to the Client, and anything to the contrary shall be null and void. Using compliance with the maximum commission limits prescribed in this Regulation as a pretext for refusing to contract, terminating the contract or restricting dealings shall be deemed an unlawful refusal.

Article 4

Obligations of the Service Provider towards the Client

The Service Provider shall:
1- Provide the tools and technical infrastructure necessary to enable the Client to use the services of the electronic platform, as determined by the contract concluded between the two parties.
2- Enable a direct communication feature between the Service Provider, the Client, the consumer and the delivery agent for a period of not less than four hours from the time the order is delivered to the consumer.
3- Provide the Client – at its request – with aggregated statistical data on the orders received for its products through the platform, enabling it to understand the characteristics of consumers without disclosing the identity of any of them, provided that such data is limited to gender, age group, residential area and similar general data, within a period not exceeding one week from the date the request is submitted, and without prejudice to the provisions on the protection and confidentiality of personal data. Such data shall not be deemed an additional service to the Client for which fees are due, but rather an inherent right of the Client which the Service Provider shall enable it to exercise.
4- Ensure that all terms, conditions and commissions relating to the contract between the Service Provider and the Client are set out in a written contract signed by both parties, and that copies of the contract are available to the contracting parties. No fees, commissions or financial obligations not set out in the contract signed between the two parties shall be recognised, and every agreement to the contrary shall be void.
5- Provide clear financial records or reports enabling the Client to track orders and the amounts collected and due to it, free of charge, provided that such data is continuously available and electronically extractable.
6- Enable the Client, upon the expiry or termination of the contract, to extract its data and records relating to its activity on the platform in a clear and usable format, within a reasonable period, free of charge.
7- Pay the amounts due to the Client for orders actually executed, as evidenced in the financial records or reports available to both parties, within a period not exceeding 14 days from the date the order is executed, unless a shorter period is agreed. Payment may not be delayed without a legitimate and disclosed justification.
8- Ensure that all promotional offers organised or participated in by the Service Provider – including sales at reduced prices and the promotion of goods and services through the electronic platform – apply to all its Clients or to a homogeneous category of them. No promotional offer may be restricted to a particular Client, nor may other Clients of the same category be excluded from benefiting from it, so as to ensure that offers are available on the same terms to all Clients without distinction. The Service Provider shall obtain the necessary approvals for such offers in accordance with the laws, resolutions and controls in force, from the Ministry or the Competent Authorities, as the case may be.
9- Not compel any Client to contract with it on an exclusive basis or require that the Client not contract with other service providers; not oblige the Client, or require it, not to offer or sell its products at a lower price outside the platform, through any other platform or directly through its own sales outlets; and not include in the contract any term that restricts, directly or indirectly, the Client’s freedom to set its prices or offers outside the platform. It is likewise prohibited to take any measure that penalises the Client for dealing with others or deters it from doing so – such as depriving it of delivery agents, raising the commissions charged to it, reducing its visibility, delaying its dues, depriving it of advantages available to others or depriving it of some or all of the services the platform provides to Clients – and every term or agreement to the contrary shall be null and void.
10- Not oblige the Client to purchase or accept an additional service it does not want as a condition for obtaining a basic service; make services available for purchase separately; and not tie access to the basic service to bundled services. Every term or agreement to the contrary shall be null and void.
11- Not make any material amendment to the terms of the contract or to its services except after notifying the Client in writing at least thirty days before the date on which the amendment takes effect, during which the Client shall have the right to terminate the contract if it does not accept the amendment, without incurring any penalty or liability, unless exceptional circumstances arise pursuant to legal or urgent measures.
12- The following conduct shall be deemed an express violation of the provisions of this Regulation:
• Using any technical mechanisms or algorithms that would create unfair discrimination or unlawful preference between Clients, favour one Client over another for monopolistic purposes, or harm them.
• Misleading Clients regarding their data or deliberately concealing it from them.
• Imposing any contractual terms outside the scope of the signed contract, or attempting to impose any fees or deductions not provided for in the contract and the schedule of services, without the Client’s prior written consent.

Article 5

Obligations of the Service Provider towards the Consumer

The Service Provider shall:
1- Enable the consumer to obtain clear, accurate and complete information before completing the order, including the main characteristics of the products offered and their prices, the details of their supplier and the steps for completing the order.
2- Provide the consumer, before the order is completed, with a clear statement of the price of the products and the amount of the delivery fee; the consumer may not be charged any other amount or fee not provided for in this Regulation. Excepted from this are subscriptions, additional services and the minimum order value, provided that two conditions are met: the consumer’s express consent to them and their clear prior disclosure.
3- Make available to the consumer electronic payment methods characterised by simplicity, transparency and non-discrimination, consistent with the instructions issued by the Central Bank of Kuwait. No fees may be imposed on the consumer for using such methods.
4- When making any promotional offer or discount, ensure that the offer is genuine and not misleading, clearly stating the price before and after the discount, and observe the announced duration of the offer.
5- The Service Provider shall not replace any product, modify the order or cancel part of it except after obtaining the consumer’s consent, unless the consumer has agreed in advance to specific alternatives when placing the order.
6- Send to the consumer – immediately upon completion of the order – an electronic invoice in Arabic, and any other language may be used alongside Arabic, setting out the price of the products, the total price including the delivery fee, the date and place of delivery and the payment method used. The Service Provider shall keep an electronic record of all documents relating to the consumer for a period of not less than five years, and shall enable the consumer to view them or obtain a copy of them whenever the consumer so requests.
7- Clearly disclose to the consumer on the platform the Clients whose appearance in a featured position, at the top of the ranking or in display lists results from a paid amount, by means of a visible label adjacent to them – such as the words “Advertisement”, “Paid” or “Sponsored” or any equivalent – enabling the consumer to distinguish them from the natural ranking based on quality, demand or the consumer’s personal preferences. No indication or label may be displayed suggesting to the consumer that the Client or the product has attained a particular rank, rating or popularity – including, by way of example and not limitation, the phrases “Best Seller”, “Top Rated”, “Most Popular”, “Trending in Your Area” and “Exceptional” or any equivalent – unless it is based on a genuine and objective criterion grounded in actual data such as sales or consumer ratings; and if its appearance is in return for a paid amount, this shall be expressly disclosed. Paid visibility may not be displayed in a manner that misleads the consumer as to its true nature. The Service Provider shall also provide the consumer with a clear and easily accessible statement of the factors affecting the ranking and visibility of lists, covering both natural factors and paid commercial arrangements, without disclosing algorithms, trade secrets or information that would harm cybersecurity or the Client’s intellectual property rights.
8- Provide the consumer with a technical means enabling the consumer to review the order and correct any errors in it before final confirmation; if such means is not available, the consumer may amend or cancel the part in which the error occurred, provided that the consumer notifies the Service Provider immediately upon discovering it and has not benefited from the product or service.
9- Clarify to the consumer, in a clear and announced manner, the policies on cancellation, refund of all amounts included in the purchase and compensation for breach in respect of the order, in conformity with the relevant laws and resolutions in force. The refunded amount may not be limited to a purchase voucher usable within the platform, and it shall include the delivery fee paid and the tip.
10- Enable the consumer to reach customer service and follow up orders easily, and notify the consumer in a timely manner of any delay or difficulties materially affecting the execution of the order.

Article 6

Order Management and Supervision of Delivery Agents

The Service Provider shall:
1- Organise the process of receiving orders from consumers, verify the completeness of their details, and transmit them to the Client accurately and in a timely manner.
2- Fully manage and supervise delivery agents at all stages of order execution, starting from notifying them of the order details and of the Client’s location for collecting the order, following up its collection and verifying its conformity with the details recorded on the electronic platform, then following up the delivery, and ending with the delivery of the order to the consumer and proof of completion of delivery by the approved means.
3- Ensure that delivery agents observe the specified times, preserve the integrity of the order during transport and behave properly towards the consumer, and that the delivery agent does not demand from the consumer any additional cash consideration for the delivery. Excepted from this is the tip paid voluntarily by the consumer to the delivery agent, which shall be transferred to the agent in full; the Service Provider is prohibited from deducting, withholding or reallocating any part of it to others in any case, and anything to the contrary shall be null and void.

Article 7

Maximum Commission and Delivery Fee

Pursuant to Article (3) of Decree-Law No. (10) of 1979 on the Supervision of Trade in Goods, Services and Crafts, and its Executive Regulations, and in order to regulate the financial consideration charged by the Service Provider for the electronic services it provides to Clients, in a manner that achieves the public interest, price stability and consumer protection, the following provisions shall apply:
First: Maximum amount charged by the Service Provider to the Client:
The total of what the Service Provider charges the Client by way of commission and financial consideration for its services – whatever its name or basis of calculation, including what it charges for advertising, promotion, featured or paid visibility, ranking priority or any similar promotional service in whatever form, and what it charges the Client for the delivery service it provides – may not exceed (17%) of the total order value before the delivery fee due from the consumer is calculated, for each order separately. If the Client undertakes the delivery of the order itself, through its own delivery agents or by its own means, the total charged to it by the Service Provider may not exceed (10%) of the total order value before the delivery fee due from the consumer is calculated, for each order separately.
The Service Provider may not oblige the Client to use the delivery service it provides, prevent it from delivering its orders itself or by its own means, make the display of its products on the platform conditional upon its acceptance of the delivery service, or impose any consequence – direct or indirect – that harms it because it chooses self-delivery.
Second: Delivery fee:
The consumer alone shall bear the fee for delivering the order to him, provided that it does not exceed one Kuwaiti dinar per order, and the Service Provider may not collect any amount exceeding this limit under any name.
If the Client undertakes the delivery of the order through its own delivery agents or by its own means, the Client shall be entitled to the full delivery fee, and the Service Provider may not collect or retain it.

Article 8

The Ministry shall have the right to request any data or clarifications relating to prices, services or commissions, and the Service Provider shall provide them within the period determined by the Ministry; the Ministry may request an independent audit where necessary.

Chapter Three – Obligations of the Client

Article 9

The Client shall:
1- Provide the Service Provider with correct, accurate and up-to-date data and with clear and complete information about its products and their prices that it announces or offers through the electronic platform, so as to enable the Service Provider to perform its responsibilities towards the consumer and the other parties to the contractual relationship.
2- Guarantee the correctness and accuracy of the data, information, prices and promotional offers displayed on the electronic platform by the Client, and bear full legal responsibility for them.
3- Guarantee the quality and safety of the products provided through the platform and their conformity with the specifications and requirements in force according to the nature of each product, and bear full responsibility therefor.
4- Refrain from making any amendment to the order after its confirmation except through the approved channels within the electronic platform, with the consumer’s consent and in a manner that ensures the Service Provider is aware of it.
5- Cooperate with the Service Provider in dealing with consumer complaints or disputes relating to orders in accordance with the Service Provider’s customer service policies.
6- Not impose on the consumer any additional fees or amounts not provided for or not announced on the electronic platform.
7- Not use consumers’ data or disclose it to any third party outside the scope of executing the order, and in accordance with the legislation in force.
8- Ensure that the prices of its products displayed on the electronic platform match the prices applied at its actual point of sale, at the same value and without any increase, without prejudice to sales at reduced prices and the advertising and promotion of goods and services for which approvals have been obtained from the Ministry or the Competent Authorities, in accordance with the laws, resolutions and controls in force.

Chapter Four – Exchange and Return Policy

Article 10

The Service Provider shall adopt a clear and announced policy for exchanges, returns and refunds, in accordance with the following provisions:
First: Without prejudice to the warranty provisions set out in Article (12) of this Regulation, the consumer may return the product within (14) days of receiving it, and exchange it or return it against a refund of its value by the same method of payment or by another method to be agreed upon, without any additional cost, provided that the product is in the same condition as at the time of purchase.
Second: If delivery is delayed to an extent that makes it impossible to use the product, the consumer may request its return and a refund of the full amount paid.
Third: The consumer shall not be entitled to return the product if the consumer has used it or benefited from it, or if the product was made at the consumer’s request or according to the consumer’s own specifications, unless there is a manufacturing defect in the product upon trial; or if the product is perishable, expires within a short period or is of a nature that so requires.
Fourth: Medicines or medical preparations may not be returned or exchanged after receipt, in order to protect health safety, and the consumer’s right shall be limited to two cases: (a) a clear error by the pharmacy in dispensing the medicine contrary to the electronic order approved on the platform; (b) if the medicine is visibly damaged upon delivery or expired. This is without prejudice to the controls of the Ministry of Health.

Article 11

Cases of Cancellation of the Order and Their Effects

The Service Provider shall be deemed the guaranteeing party towards the consumer for the execution of orders. If the consumer submits a complaint to the Service Provider through its approved complaints system, the Service Provider shall respond to it within a period not exceeding (48 hours) from its submission. It shall be bound towards the consumer to compensate the consumer in full for any shortcoming or breach in the execution of the order, within a period not exceeding (seven) working days from the date the complaint is submitted with complete details, or from the date its liability is established, whichever is earlier. The Service Provider shall have the right of recourse against the party at fault for what it has paid, so that the consumer does not bear the consequences of what is beyond the consumer’s control.
The burden of cancellation or error shall be distributed among the parties as follows:
1- What arises from a malfunction of the platform or its system: borne by the Service Provider.
2- What arises from a delay of the delivery agent: borne by the Service Provider, and shall not be charged to the Client unless it results from the Client’s delay in preparing the order or handing it over to the agent.
3- What arises from the Client’s delay in preparing the product, or from an error in preparing or packing the order, or its nonconformity with what the consumer ordered, or damage to the product, whether partial or total: borne by the Client.
The Service Provider may not make any automatic deduction from the Client without verifying the Client’s liability or disclosing the reason to it in advance. This shall not prejudice the Service Provider’s guarantee towards the consumer prescribed in the first paragraph of this Article.
Excepted from this are cases where the consumer cancels the order of the consumer’s own will: the consumer shall bear no cost if the order is cancelled before its preparation begins, and if it is cancelled after its preparation, the consumer shall bear its actual cost without any additional fees. The Service Provider may – where the consumer repeatedly cancels or refuses delivery without a legitimate justification – restrict the consumer’s dealings on the platform.

Chapter Five – Complaints and Grievances System at Platform Level

Article 12

The Service Provider shall:
1- Enable the consumer to submit complaints or objections and obtain a reasoned response within a reasonable period determined and announced by the platform.
2- Provide a clear complaints system on the electronic platform enabling complainants to submit complaints electronically and follow them up until the decision to close them, including in particular the content of the complaint, the date of its submission, its status, the measures taken in respect of it and the decision to close it and the reason therefor.
3- Notify the complainant and the Client, or either of them – as the case may be – of the status of the complaint and of any updates or measures taken in respect of it until it is decided.
4- Examine the complaints submitted and coordinate in respect of them with the Client or the delivery agent according to the nature of the complaint, in a manner that ensures prompt and efficient handling.
5- Retain the data and records relating to complaints and make them available to the complainant and the Client for a period of not less than six months from the date of closure.
6- Not prejudice the right of the consumer or any interested party to resort to the Competent Authorities or the courts, whether during the consideration of the complaint or after it is decided.
7- Not take any measure that would harm the complainant because of the submission of the complaint.
8- Provide a direct and effective communication channel enabling the consumer to reach a customer service employee easily and without complication, not limited to automated means alone.

Chapter Six – Competent Committee at the Ministry and Confidentiality of Information

Article 13

Competent Committee

A competent committee shall be formed at the Ministry of Commerce and Industry to examine complaints and disputes arising between the Client and the Service Provider regarding the application of the provisions of this Regulation. In performing its duties, the Committee may request any data or documents it deems necessary to investigate the complaint before it, and the Service Provider and the Client shall submit what is requested of them within the period determined by the Committee.
The Committee shall reach a reasoned recommendation on the complaint within a period not exceeding seven working days from the date the complaint is submitted with complete data and documents, and shall submit it to the Undersecretary of the Ministry for presentation to the Minister. The Minister, or whomever he delegates, shall decide on the administrative penalties or measures to be taken in respect of the complaint in accordance with the provisions of Article (15) of this Regulation.

Article 14

Confidentiality of Information

All data and information provided to the platform shall be deemed confidential and may not be disclosed to third parties except for the purposes specified in this Regulation and in accordance with the legislation in force, without prejudice to the right of each of the Client and the consumer to access their data in accordance with the provisions prescribed in this Regulation.

Chapter Seven – Violations and Penalties

Article 15

Without prejudice to any more severe penalty provided for by another law, every act or omission resulting in a breach of the obligations or provisions set out in this Regulation shall constitute a violation of the provisions of this Regulation, and one or more of the following administrative penalties shall be imposed, according to the gravity and recurrence of the violation, as follows:
First: If the violation is committed by the Service Provider:
1- Warning.
2- Administrative closure until the violation is removed and the situation is rectified; such closure shall necessarily entail the blocking of the platform for the duration of the closure.
3- Revocation of the licence; revocation of the licence shall entail the permanent blocking of the platform.
Second: If the violation is committed by the Client:
1- Warning.
2- Closure of the Client’s premises or suspension of its activity, if the Ministry is the authority competent to license it, or addressing the authority competent to license the activity to take the decision of closure or suspension if the licence was issued by it; this shall necessarily entail the suspension of the display of its products or services on the platform for the duration of the closure or suspension.
3- Revocation of the licence, according to the authority concerned; this shall necessarily entail the permanent suspension of the display of its products or services on the platform.
All of the above is without prejudice, in all cases, to the Ministry’s right to impose a penalty in accordance with the regulations governing financial penalties in force at the Ministry.

Guidelines for the Sector of Consumer Order Delivery Services via Smart Platforms and Applications

Introduction

In light of the findings of the studies conducted by the Competition Protection Agency on the market for consumer order delivery services in the State of Kuwait, and the numerous complaints received by the Agency from market participants concerning practices likely to affect competition adversely, these Guidelines have been issued as an indicative framework directing all parties in the market towards compliance with the principles of free and fair competition.
The Guidelines aim to raise the awareness of platforms, product sellers, delivery service providers and consumers of the provisions of Competition Protection Law No. (72) of 2020 and its Executive Regulations, and to acquaint them with the most prominent practices that may be considered restrictive of competition, while providing practical guidance on avoiding them, so as to achieve a sustainable balance among market participants.
The Guidelines also draw on international and regional best practices in regulating digital markets and on previous experience, some of which was subject to the Agency’s intervention through market studies, investigations and complaints, so as to serve as a guiding tool contributing to enhancing transparency, raising market efficiency and encouraging innovation and investment in the sector of consumer order delivery via electronic platforms and smart applications.
These Guidelines are not an exhaustive list of all forms of practices that may violate the Law; rather, they set out indicative and awareness-raising examples of the most prominent of such practices as described below.

Definitions

Subject to the provisions of Article One of Competition Protection Law No. 72 of 2020 and its Executive Regulations issued by Resolution No. 25 of 2021, as amended, the following words and terms shall – unless the context requires otherwise – have the meanings assigned to each of them:
• The Agency: the Competition Protection Agency of the State of Kuwait.
• The Law: Competition Protection Law No. 72 of 2020.
• The Executive Regulations: the Executive Regulations of the Law.
• Platform/Platforms: applications or websites acting as intermediaries between product sellers and service providers on the one hand and the end consumer on the other.
• Product Sellers: persons who offer their products through the platforms.
• Service Providers: persons who provide delivery services to the end consumer.
• Consumer: every person who purchases a good or service for consideration, or benefits from either of them, for the purpose of consumption, or with whom dealings or contracts are made in respect thereof.

1. Objectives

• Creating a competitive environment for the consumer order delivery platforms sector.
• Raising awareness of commercial practices between platforms, product sellers and delivery service providers in line with the Competition Law and its Executive Regulations.
• Setting out the general principles that enhance market efficiency and prevent practices harmful to competition.
• Raising the level of transparency and disclosure and encouraging innovation.
• Reducing barriers to entry or expansion in the relevant market, especially those affecting the business environment and small and medium enterprises.

2. General Rules

• Ensuring that commercial practices between platforms and product sellers are based on the principles of free and fair competition.
• Promoting competition on quality, efficiency and innovation instead of practices harmful to competition.
• Complying with the provisions of the Competition Protection Law and its Executive Regulations when concluding or amending dealing contracts between platforms and product sellers or service providers.
• Observing transparency and the disclosure of fees and commissions and of any amendments to them.
• Observing transparency with regard to the terms of contracting with product sellers and service providers.

Relevant Market

In this sector, the relevant market means the framework within which supply and demand for a specific good or service meet within a geographic area, as set out in Article (1) of the Competition Protection Law, and it is determined in two dimensions:
• Relevant product: includes all digital platforms acting as intermediaries between product sellers and service providers on the one hand and consumers on the other, excluding:
1. Consumer order delivery platforms of producers who offer their products exclusively through their direct channels.
2. Traditional delivery services not linked to the display of products through platforms.
3. Orders placed directly with product sellers or by telephone without the intermediation of a platform.
• Relevant geographic area: the delivery of consumer orders via smart platforms and applications within the borders of the State of Kuwait.

3. Horizontal Agreements (Cartels)

• Article (5) of the Law prohibits competing persons in a relevant market from agreeing or engaging in acts connected with horizontal relationships that would bring about any of the following:
a. Fixing the prices of the products concerned, directly or indirectly, by raising, lowering or stabilising them, or imposing any restrictive commercial conditions on the sale or distribution of a good or the supply of a service, or in any other form contrary to the market mechanism.
b. Dividing or sharing product markets by region, by volume of sales or purchases, by type of products sold or by any other means.
c. Fixing the quantity of production, distribution or sale of goods, or determining the manner or means of providing services.
d. Restricting technical development or investment in respect of the production, distribution or sale of a good or the provision of a service.
e. Collusion in submitting bids or offers (bid rigging) for the sale, purchase or supply of any products.
f. This includes competitors exchanging, directly or indirectly, sensitive commercial information (such as prices, commissions, costs, customer lists or other information).
g. A platform asking product sellers about their dealings with competing platforms and the details thereof.
h. A product seller asking the platform for information about competing product sellers.

4. Agreements, Concerted Practices or Acts Connected with Horizontal Relationships

Article (6) of the Law provides that: (Persons are prohibited from entering into any agreements, concerted practices or acts connected with horizontal relationships that would prejudice, limit or prevent competition).

5. Vertical Agreements (Concerted Agreements under Article (6)

• Persons operating in the relevant market, in the absence of dominance, shall comply with the provisions of the Competition Protection Law and its Executive Regulations, in particular Article (7).
• Article (7) of the Law provides that: (Persons connected by a vertical relationship are prohibited from entering into any agreements or concerted practices that would restrict, limit or prevent competition….).
• The Agency considers that certain practices may constitute a violation of the provisions of the Law even in the absence of dominance, where they would limit competition or exclude competitors, including the following:
1. Directly or indirectly fixing or imposing the prices of products, or setting a minimum price or conditions for their resale.
2. Predatory pricing: selling the service or product at a price below its marginal cost or its average variable cost.
3. MFN clauses: obliging product sellers not to offer better prices or terms on competing platforms or any other channels.
4. Exclusive contracts: imposing an obligation on product sellers or service providers not to deal with competing platforms.
5. Discrimination: imposing different commissions or terms on similar stores.
6. Self-preferencing: the platform granting better treatment to its own products or services at the expense of competitors.
7. Tying: obliging product sellers to take additional unwanted products.
8. Unjustified refusal to deal: refraining from dealing without an objective reason.
9. Imposing unfair commercial terms.

6. Abuse of a Dominant Position

Article (8) of the Law provides that: (Any person is prohibited from abusing a dominant position, and any practice that leads to preventing, restricting or limiting competition in the relevant market shall be deemed an abuse of a dominant position).
A dominant person is prohibited from abusing the dominant position in a manner that would limit, restrict or prevent competition, and this includes – by way of example – the following:
1. Directly or indirectly fixing or imposing the prices of products, or setting a minimum price or conditions for their resale.
2. Engaging in conduct that obstructs another person’s entry into the market, excludes that person from it or exposes that person to losses. For example, such conduct may be the following:
a. Predatory pricing: selling the service or product at a price below its marginal cost or its average variable cost.
b. MFN clauses: obliging product sellers not to offer better prices, promotional or other offers, or better terms on competing platforms or any other supply channels.
c. Self-preferencing: the platform granting better treatment to its own products or services at the expense of competitors in order to foreclose them and give itself a competitive advantage over the other competitors.
d. Imposing unfair commercial terms; in this context, the dominant person may impose prohibitive, unjustified or unnecessary terms on those dealing with it.
3. Creating an artificial shortage or abundance of products.
4. Discriminating between customers in similar contracts with respect to product prices, terms of sale and purchase or in any other form, such as the commission rates collected from product sellers, delivery charges or other terms of dealing; all those dealing with it who have similar commercial positions shall be treated on equal terms.
5. Obliging a customer to refrain from dealing with a person competing with it through contractual obligations or other restrictions, directly or indirectly. For example, imposing an obligation on product sellers or service providers not to deal with competing platforms.
6. Withholding the products available in the relevant market, wholly or partially.
7. Refusing to deal with a particular customer on the usual commercial terms without a legitimate reason.
Making the conclusion of a contract or agreement conditional upon the acceptance of obligations which, by their nature or according to commercial usage, are unrelated to the original subject of the dealing or agreement.

7. Criteria for a Dominant Position

• Dominant position: the position that enables any person, alone or jointly with other persons, to control or influence the relevant market and to behave to a large extent independently of its competitors, its customers or consumers.
• The definition of the relevant market (in both its elements) is an essential element in assessing whether a person is dominant, so that its conduct may be assessed under Article (8) of the Competition Protection Law.
• When assessing a dominant position, some or any of the following criteria may sometimes be taken into account:
1. The market share of the dominant person in the relevant market.
2. The market share of the remaining competitors.
3. The capacity relative to the volume of orders on the platform.
4. The actual capacity of the platform.
5. The efficiency and reach of the delivery service.
6. Financial solvency.
7. The profits of the dominant platform compared with the other platforms over a specified period
8. Vertical integration (if any).
9. Ability to access finance.
10. Barriers to market entry.
11. The bargaining power of those dealing with the platform.

8. Monitoring and Oversight Mechanisms

• The mechanisms through which the Agency may monitor and oversee the market take various forms, as follows:
1. Preparing periodic market studies to measure concentration levels and analyse the development of competition in the sector.
2. Receiving complaints, and initiatives by the Agency.
3. The Agency acting on its own initiative.
4. The Board of the Agency imposing corrective measures.
5. Taking the necessary legal action to deter violations once proven.

10. Corrective Measures

The Competition Protection Law provides for a set of measures to regulate the market and ensure that persons comply with its provisions in order to address any practices harmful to competition that may occur in the relevant market.
For example, the Agency may take the following measures:
1. Obliging the violating persons to perform an act or refrain from another in accordance with the requirements of protecting competition in the relevant market.
2. Amending or removing the violating contractual clauses.
3. Obliging the violating platforms or persons to implement awareness programmes to promote a culture of competition.
4. Granting a period for rectification in accordance with the criteria set out in Article (29) of the Law.

11. Conclusion

Compliance with these Guidelines enhances the awareness of market participants, establishes an effective and sustainable competitive business environment, supports the efficiency of the market for consumer order delivery via smart platforms and applications, and contributes to achieving a balance between the interests of consumers, product sellers and platforms, which in turn promotes innovation and investment in this vital sector and brings welfare to consumers through the availability of high-quality alternatives and services.

Issued on 8 July 2026 and published in the Official Gazette Kuwait Al-Youm on 12 July 2026.