A Sao Paulo court has ruled that 99Food, the food delivery arm of China's Didi Global Inc breached Brazil's competition law by signing exclusive contracts with restaurants to exclude rival Keeta, reports Caixin.

The October 20 ruling prohibits 99Food from enforcing clauses that prevent restaurants from working with Keeta, Meituan's overseas food delivery brand. The court deemed the terms discriminatory and contrary to constitutional principles of free competition and equal treatment.

Keeta filed the lawsuit in August, alleging 99Food used financial incentives to pressure restaurants into exclusivity agreements designed to block its market access. The suit claimed 99Food spent at least BRL900 million (US$167 million) to secure these deals.

Case documents revealed that 99Food offered prepaid cash bonuses to merchants who agreed not to engage with Keeta, its affiliates, or Latin American competitor Rappi. In exchange, merchants committed to avoiding any business ties that could benefit Keeta or similar platforms.