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Posted On: 7 April 2020 06:46 pm

MOCI announces maximum charges for e-marketing and product delivery services

Darlene
Darlene
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The Ministry of Commerce and Industry has just announced the maximum charges for e-marketing and product delivery services, as per the decision of the Committee Tasked with Determining Maximum Prices and Profit Ratios, through its official social media accounts.

All competent authorities are compelled to implement this decision which is effective from the date of its issuance 05/04/2020.

The maximum service price as a percentage of the order value imposed by the marketing platform on the supplier is the following:

  • Marketing and delivery services - 19%
  • Marketing services only - 10%

*10 Qatari Riyals is the maximum service charge for consumer delivery

Marketing and delivery platforms must maintain the percentages and sums collected from suppliers and consumers prior to the date of the notification letters sent by the Ministry's Competition Protection and Anti-Monopolistic Practices Committee on 22/5/2019 on reconciling their status should these percentages be less than the maximum percentage referred to in this decision.

The Ministry has also mentioned that marketing and delivery platforms are prohibited from the following:

  • From imposing discriminatory conditions and/or refusing to deal with or placing restrictions upon suppliers.
  • From imposing any other percentages or sums on suppliers and consumers through any means or under any label in order to collect additional charges in violation of the provisions of this decision.
  • From increasing charges for the services outlined in the decision before obtaining the prior approval of the committee.

Marketing and delivery platforms - those subject to the provisions of this decision shall reconcile their status accordingly and commit to adding an appendix of the service charges for valid contracts in accordance with the provisions of this decision. The relevant department shall be provided with copies of these valid contracts and price lists relating to the contracted provider within a month of the date of the decision's issuance.

Suppliers shall give priority to dealing with marketing and delivery platforms affiliated with national companies and businesses operating in the field of product marketing and delivery.

Definition of terms:

Marketing and delivery platforms - companies and commercial institutions involved in the marketing and delivery of products using technology systems and applications.

Service charges - the percentages, commissions, or sums that are collected by product dealers in markets in line with signed contracts.

Supplier - party that provides marketing and delivery services using technology or electronic systems and applications.

Consumer - any party that obtains goods or services, either for free or for a fee, in order to meet his own personal needs, those of others, or any individual with whom he is doing business or otherwise contracted to.

Target market - marketing and product delivery market that employs technology systems and applications.

Source: Ministry of Commerce and Industry