China Proposes Regulations to End 'Irrational' Food Delivery Subsidies and Price Wars
Chinese authorities have introduced draft regulations aimed at curbing the misuse of subsidies by food-delivery platforms and reining in intense sector competition. The proposed rules, opened for public comment, seek to ban practices such as using subsidies to disrupt the market and selling goods at a loss. This move is part of Beijing's efforts to address what it terms 'irrational' subsidies and ongoing price wars within the industry.
Chinese authorities recently introduced draft regulations targeting the food-delivery sector, specifically aiming to crack down on the misuse of subsidies by platforms.
The initiative comes as Beijing seeks to control the intense competition prevalent in the industry. The proposed rules are open for public comment until July 17.
According to a statement from the State Administration for Market Regulation (SAMR), these regulations would ban several practices. Prohibited activities include using subsidies to disrupt the market and selling goods at a loss, actions identified as contributing to 'irrational' subsidies and price wars within the sector.
(Source: South China Morning Post)
