China's three major food delivery platforms — Ele.me, Meituan, and JD.com — are locked in a high-stakes battle for market dominance, sparking regulatory intervention. The companies recently intensified price wars through aggressive subsidies, including Meituan's "100 billion yuan subsidy" campaign aimed at attracting cost-conscious consumers.
The State Administration for Market Regulation (SAMR) convened a meeting with platform representatives this week, urging them to prioritize compliance with e-commerce laws, anti-unfair competition regulations, and food safety standards. Authorities emphasized the need for "rational competition" to ensure sustainable growth in the $150 billion food delivery sector.
"Platforms must abandon short-term predatory pricing tactics and focus on long-term industry health," a SAMR spokesperson stated. The regulator warned against practices that could destabilize small businesses or compromise consumer rights while acknowledging the role of "appropriate promotions" in market development.
This intervention comes as China's tech sector faces increased scrutiny under Beijing's "common prosperity" policy framework. Analysts suggest the move aims to balance market vitality with social stability, particularly as food delivery services become essential for urban populations.
