China Drafts Regulations to Restrict Subsidies and Price Wars in Food-Delivery Sector
China's State Administration for Market Regulation (SAMR) has proposed draft regulations to prohibit the use of subsidies to disrupt the market and sell goods at a loss in the food-delivery industry. The rules are open for public comment until July 17.
China's State Administration for Market Regulation (SAMR) introduced draft regulations aimed at restricting the use of subsidies and price wars in the food-delivery sector. The draft identifies practices such as using subsidies to disrupt the market and selling goods at a loss as prohibited. The regulations are open for public comment until July 17. According to bricscompetition.org, SAMR said the platforms have resorted to irregular subsidies and pricing wars to win customers, and the anti-monopoly and anti-unfair competition commission under SAMR conducted an investigation and assessment of market competition conditions in the food-delivery sector. Irregular subsidies and pricing wars negatively affect platform operators, riders, consumers, and the real economy.
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