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Chinese delivery giant Meituan handed $527 million antitrust fine By Reuters

by Mike Robinson

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© Reuters. FILE PHOTO : Meituan’s logo can be seen at China International Fair for Trade in Services 2021 (CIFTIS), Beijing, China September 3rd 2021. REUTERS/Florence Lo

BEIJING, (Reuters) – China’s antitrust regulator fined Meituan, a food delivery company, 3.4 billion yuan (527.4 millions USD) for abusing its market dominance, it said Friday. This is the latest punishment in Beijing’s crackdown on online platforms.

According to the regulator, it amounts to 3% of 2020 domestic sales. Meituan must also stop “illegal behavior” and pay 1.29 billion Yuan to all merchants using its platforms.

Meituan stated that it had accepted the punishment and would implement any rectifications required by regulator.

In April, the State Administration of Market Regulation launched an antitrust probe into Meituan. It focused on vendor forced use of its platform. It warned that the company could face “significant” antitrust penalties in August.

E-commerce giants were hit with a $2.75 Billion record fine by the SAMR Alibaba The same violations were reported to the (NYSE:) regulator in April. The fine would have been equivalent to about 4 percent of Alibaba’s domestic 2019 sales, according to regulators.

($1 = 6.4472 renminbi)

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