A report for TotalPass in a complaint against Gympass

TotalPass (wellbeing apps market) has filed a complaint against Gympass before CADE for anticompetitive conduct. According to the complaint, Gympass foreclosures the market by including exclusivity clauses in its contracts with the gyms.

A CRA team prepared a report assessing the potential competitive harm of the exclusivity clauses. The report notes that the the exclusivity clauses between Gympass and the gyms prevent competing apps from contracting with a large share of gyms. As this is a two-sided market, competitors cannot expand their client base, acquire a critical mass, and therefore rival with Gympass.

Following the report submission, TotalPass counsel requested CADE to file an injunction for Gympass to suppress exclusivity clauses from its contracts with the gyms. The case is still under CADE’s assessment.

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