Published • loading... • Updated
China issues draft rules on food delivery subsidy in effort to curb price wars
Regulators would bar platforms from forcing merchants into subsidy campaigns and from selling below cost as they seek to curb price wars.
- On Wednesday, the State Administration for Market Regulation introduced draft regulations targeting food-delivery platforms to limit subsidy campaigns that regulators say harm the economy.
- Beijing has targeted the sector to address "unfair" competition and sluggish consumption, as fierce rivalry between top platforms including Meituan and Alibaba's Taobao Shangou has led to price wars.
- The draft rules prohibit platforms from using "long-term, large-scale" subsidies to disrupt market order, while banning them from using traffic allocation to "indirectly coerce" merchants.
- Meituan said in a statement that it "firmly endorses" the proposals and will "actively cooperate" with regulators to promote "win-win results for all parties."
- Public comment on the measures remains open until Jul 17, and the framework mandates that platforms provide public disclosures before and after launching any subsidy campaign.
Insights by Ground AI
12 Articles
12 Articles
China seeks to curb 'unfair' competition in food delivery sector
Under the new rules, platforms may not "indirectly coerce" merchants into participating in subsidy schemes through allocation of user traffic, and must not force merchants and delivery drivers to bear the costs of subsidies.
·Singapore, Singapore
Read Full Article
Times of IndiaReposted by 
The Economic Times
The Economic TimesChina seeks to rein in 'unfair' food delivery competition with new rules
China is seeking to crack down on 'unfair' competition among food delivery platforms by introducing new rules to limit subsidy campaigns that regulators say harm the economy. "These practices harm the interests of merchants operating on the platforms, delivery drivers and consumers, squeezing the real economy," the SAMR said.
·India
Read Full Article
Father's Day SaleGet 40% off Vantage subscriptions for yourself or a friend.Get Started
Coverage Details
Total News Sources12
Leaning Left1Leaning Right4Center4Last UpdatedBias Distribution45% Center, 44% Right
Bias Distribution
- 45% of the sources are Center, 44% of the sources lean Right
45% Center
11%
C 45%
R 44%
Factuality
To view factuality data please Upgrade to Premium
