China to probe food delivery platforms under anti-monopoly law
State Council announcement cites ‘excessive subsidies’ and ‘price wars’ in document unveiling market assessment for online delivery services
China has launched a market competition probe and assessment for its food delivery platforms, the State Council announced on Friday, a move analysts said was an affirmation of the country’s determination to continue to combat self-defeating competition.
“Recently, issues such as excessive subsidies, price wars and control over traffic flow in the online food delivery platform service industry have become prominent,” according to a statement issued by the Anti-Monopoly and Anti-Unfair Competition Commission of the council, China’s cabinet.
The assessment will be conducted through on-site inspections, in-person interviews and questionnaires to gain a detailed understanding of competition among food delivery platforms, the statement said, in addition to soliciting views from merchants, workers and consumers operating under or using the platforms.
Authorities will also comprehensively examine market conditions, carry out analysis and propose corrective measures, according to the statement.
The committee urged food-delivery platforms to actively cooperate with the probe, strictly fulfil their responsibility for antitrust compliance, compete fairly in the market and promote the “innovative and healthy development” of the sector.