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China's antitrust regulator to fine Meituan about US$1 billion -WSJ

China's antitrust regulator to fine Meituan about US$1 billion -WSJ

FILE PHOTO: People walk past a Meituan logo at the World Artificial Intelligence Conference (WAIC) in Shanghai, China July 8, 2021. REUTERS/Yilei Sun

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

The penalty could be announced in the coming weeks, the newspaper said https://on.wsj.com/3ChY7pX, 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, focussing on a practice whereby a company forces vendors to use its platform exclusively.

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

Meituan, which competes with Alibaba-backed Ele.me among others, held an estimated 68.2per cent share of China's food delivery market in the second quarter of 2020, according to Trustdata. 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.

(Reporting by Bhargav Acharya in Bengaluru; editing by Toby Chopra and Jason Neely)

Source: Reuters

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