Internet

China's antitrust regulator to fine Meituan about $1 bln

In March, Meituan was among five backers or owners of community group-buying platforms fined by SAMR over "improper pricing behaviour" related to subsidies.   | Photo Credit: Reuters

China's antitrust regulator is preparing to impose a fine of about $1 billion on Meituan for allegedly abusing its dominant market position, the Wall Street Journal reported on Friday, citing people familiar with the matter.

(Subscribe to our Today's Cache newsletter for a quick snapshot of top 5 tech stories. Click here to subscribe for free.)

The penalty could be announced in the coming weeks, the newspaper said, adding that the food delivery giant would be required to revamp its operations.

Meituan did not immediately respond to a request for comment.

China in recent months has rolled out sweeping rules to crack down on the tech and private tutoring sectors.

The State Administration of Market Regulation (SAMR) launched an antitrust probe into Meituan in April, focusing on a practice whereby a company forces vendors to use its platform exclusively.

Also Read | Why is China’s largest ride-hailing app under probe?

The SAMR in April imposed a record $2.75 billion fine one-commerce giant Alibaba over the same practice.

Meituan, which competes with Alibaba-backed Ele.me among others, held an estimated 68.2% share of China's food delivery market in the second quarter of 2020, according to Trust data. Its businesses also include bike sharing, community group buying and restaurant reviews.

In March, Meituan was among five backers or owners of community group-buying platforms fined by SAMR over "improper pricing behaviour" related to subsidies.


Our code of editorial values

This article is closed for comments.
Please Email the Editor

Printable version | Oct 20, 2021 5:45:16 PM | https://www.thehindu.com/sci-tech/technology/internet/chinas-antitrust-regulator-to-fine-meituan-about-1-bln/article35762721.ece

Next Story