China is seeking to curb what it calls “unfair” competition in the food-delivery sector by proposing draft regulations aimed at limiting the misuse of subsidies by delivery platforms. According to multiple reports, the draft rules—released for public comment—target practices that can artificially reduce prices and drive higher order volume. The proposals are linked to efforts by Beijing to rein in intense competition among platforms, commonly associated with aggressive discounting and price wars.
The reports say the draft regulations, issued by or associated with the State Administration for Market Regulation (SAMR), would spell out specific conduct that authorities would prohibit. These include using subsidies to disrupt market operations and selling goods at a loss. The draft measures also address subsidy campaigns that effectively manipulate pricing in ways that may harm market fairness.
The draft rules are open for public feedback until mid-July. The exact scope of compliance requirements and penalties is not detailed in the provided excerpts, but the overall intent is to restrict subsidy-driven price tactics and promote more regulated competition in the food-delivery market.
