China is moving to curb what it describes as “unfair” competition in the food delivery sector by proposing new draft regulations targeting subsidy practices by delivery platforms. Multiple outlets report that Beijing’s State Administration for Market Regulation (SAMR) is leading the effort, introducing a set of measures open to public comment until July 17. The draft rules focus on conduct that authorities say distorts competition, including the use of subsidies by platforms to disrupt the market and to drive down prices beyond sustainable levels.
Sources also report that China’s major food delivery platforms have pledged to reduce aggressive subsidy tactics following talks with regulators. The pledges involve platforms such as Meituan, Ele.me and JD.com and signal an attempt to end a months-long price and subsidy war that has been intensified by heavy promotional discounts.
Taken together, the reports indicate a shift toward tighter oversight of subsidy campaigns, with the draft regulations expected to define and restrict practices regulators view as irrational or misuse of promotional spending. The proposals also reflect broader efforts to promote fairer competition across the platform economy.
