KUWAIT CITY, Feb 1: The Ministry of Commerce and Industry on Sunday issued Ministerial Resolution No. 10/2026, marking an unprecedented legislative step in the Gulf Cooperation Council (GCC) by regulating the operation of restaurants and ready-made food delivery services through electronic platforms. This resolution is in response to the rapid growth and increasing influence of the digital sector on the national economy. The government asserts that the move underscores its commitment to protect consumers, boost the national commercial sector, and establish a fair and transparent competitive environment in the digital economy. It is intended to align with the growing maturity of the Kuwaiti market and enhance its appeal for sustainable long-term investment.

The ministry explained that the regulation is the result of careful monitoring and in-depth analysis of Kuwait’s technologically and operationally mature food delivery market. However, despite its attractiveness for investment and innovation, field studies uncovered detrimental monopolistic practices and unfair tactics employed by some entities, including unjustified commission hikes, imposition of exclusive contracts, lack of transparency in fee structures, and the use of discriminatory technical mechanisms affecting fair visibility within applications. In response, the ministry collaborated with stakeholders, including e-commerce platforms, restaurant owners and delivery companies for a period of three months to establish a comprehensive regulatory framework, prioritizing market sustainability and consumer protection. The ministerial decision stands as the first comprehensive and legally binding Gulf legislation of its kind, with effective monitoring tools and clear penalties, ranging from warnings to license revocation.

It mandates licensed platform operators to adjust their operations and amend their licensed activity to ‘Management of Delivery Services via Electronic Platforms’ within two months. The main provision of the new regulation states that fees and commissions charged by platforms to restaurants must be fixed for a period of three years. This corrective measure aims to restore market stability, allow establishments to plan financially and operationally, and shield small and medium enterprises (SMEs) from unfair financial pressure. Platforms are mandated to submit their 2026 fees to the ministry within one month.

Service providers are required to adopt a single, ministry-approved annual service schedule, detailing maximum limits for fees and commissions and their calculation mechanisms. The collection of any fees or application of discounts outside this schedule is strictly prohibited, nullifying any parallel side agreements. The resolution bans the imposition of exclusivity, the use of discriminatory algorithms, or preferential treatment of customers within the same category. Platforms must document all fees in written contracts and adopt annual price lists, prohibiting price changes throughout the year, and any undocumented fees shall be deemed invalid. Restaurants have the right to access their data free of charge and are granted the freedom to contract with multiple platforms.

The executive regulations enshrine fundamental consumer rights, mandating full pricing transparency without hidden fees before order completion. It guarantees order fulfillment, putting responsibility for service quality and safe delivery on the platform. The regulation standardizes pricing, preventing consumers from being charged prices higher than those offered by the actual retailer, and establishes clear complaint mechanisms with defined resolution timeframes. Minister of Commerce and Industry Khalifa Al-Ajil affirmed that the decision “is the real turning point in regulating the digital economy and puts an end to practices that exploit the lack of regulation to impose arbitrary conditions on the national commercial sector.” He clarified that fixing the fees for three years is not market interference, but a necessary corrective measure to balance a sector marked by uncontrolled price increases, which are detrimental to both the merchants and consumers.

He asserted that while Kuwait welcomes digital investment, it rejects any investment that compromises consumer rights or the sustainability of local businesses, concluding that “the digital economy cannot flourish without clear rules that protect everyone.” The decision takes effect immediately, with the ministry affirming it will monitor the implementation in a firm and transparent manner, applying penalties without leniency. This vital step solidifies Kuwait’s vision for a fair, transparent and sustainable digital market where innovation is welcome, but fairness and transparency are non-negotiable.