Brazil police seize devices from former iFood employee in trade secrets probe

By Marcela Ayres

BRASILIA, Sept 18 (Reuters) - Brazilian ‌police carried out ​a search-and-seizure ​operation this week against a former iFood employee suspected of downloading confidential commercial information before leaving the food-delivery company to join rival 99Food, according to the lead investigator.

The case marks ‌the latest development in a broader probe into alleged corporate espionage in Brazil's multibillion-dollar ⁠delivery industry, where competition has intensified following the entry of Chinese-backed platforms Keeta, owned by Meituan, and 99Food, controlled by ride-hailing ‌firm DiDi Global.

The police operation carried ‌out on Wednesday targeted a former strategic sales executive who had access to sensitive client information, such as sales volumes and customer profiles, while working at iFood, Angelo Lages, the police inspector leading ​the investigation in Rio de Janeiro, told Reuters.

"The purpose of the search was to collect electronic devices so we can conduct forensic analysis and determine what happened to the data," he said ⁠late on Thursday.

99Food said it takes such reports seriously, does not tolerate the use of data obtained through illegal means, and that the ​individual targeted by the operation is not part of its workforce.

ALLEGED THEFT OF INFORMATION

iFood, owned by Dutch investment group Prosus, controls about 80% of the market, which ​overall processed about $20 billion in orders last year, according to industry ‌group Abrasel.

In recent months, iFood has publicly alleged attempts to obtain confidential business information through former employees and paid consultations arranged by third-party firms, charges rivals deny.

iFood ⁠said this week's operation resulted from a complaint it filed involving the alleged theft of strategic and confidential commercial information by a former employee, adding that it is also pursuing legal measures to protect its data and business partners.

The ⁠former employee resigned from iFood in 2025 after informing the company he would join 99Food, the inspector Lages said, adding ​that an internal review later identified downloads of strategic files shortly before his departure.

The former employee told officers he no longer worked for 99Food and was currently operating as an independent consultant, Lages said. Investigators are also seeking to determine ‌whether other individuals or companies gained access to the information.

ANTITRUST DISPUTES

The allegations of corporate espionage are unfolding alongside a series of ongoing competition disputes before Brazil's ‌antitrust regulator Cade.

Keeta has accused 99Food of using exclusivity clauses and contractual provisions that allegedly make it harder for ⁠restaurants to operate across multiple platforms.

Separately, iFood ‌earlier this year asked Cade to ​scrutinize the expansion strategies of Keeta and 99Food, alleging they rely on heavy subsidies and sustained losses to gain market share.

($1 = 5.1326 reais)

(Reporting by Marcela Ayres; Editing by ‌Jonathan Spicer )

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Exclusive-Hacked FBI data has sensitive information about employees’ intelligence roles
• Explainer-Why new war in Ethiopia’s Tigray threatens to trigger wider conflict
• New Zealand says China is its most persistent state-backed cyber threat