Chinese regulator fines, confiscates US$527m from food-delivery platforms

[BEIJING] China’s market regulator on Friday (Apr 17) fined and confiscated a total of US$527.32 million from seven e-commerce platforms over food delivery safety violations, an official statement showed.

The companies fined include Pinduoduo, Meituan, JD.com, ByteDance’s Douyin and Alibaba’s food delivery service, Taobao Shangou.

Investigations showed the companies had failed to take necessary measures to protect consumers after failing to properly verify online food vendors’ licences and qualifications, the regulator said.

Pinduoduo, Meituan, ByteDance and Alibaba did not immediately respond to a request for comment.

Food delivery in China has become intensely competitive over the past 12 months, with e-commerce giants Alibaba and JD.com aggressively pursuing market share by offering coupons and discounts on products including ice-cream and take-away coffees.

The bitter battle for so-called “instant retail” – goods delivered within the hour – has not only squeezed company profits but also drawn scrutiny from Chinese regulators who have repeatedly warned against “race-to-the-bottom competition” among food delivery firms. REUTERS