China’s market regulator summons Alibaba, Meituan, JD amid delivery war

China’s State Administration for Market Regulation (SAMR) on Friday summoned major online food delivery platforms – Alibaba Group Holding’s Ele.me, Meituan, and JD.com – urging them to engage in “rational” competition amid a prolonged price war.

The meeting aimed to “further regulate promotion behaviours, encourage rational competition, and foster a healthy ecosystem and win-win situation for consumers, merchants, delivery riders, and platform operators”, the regulator said in an announcement.

Alibaba owns the South China Morning Post.

The SAMR said those companies must adhere to e-commerce, anti-unfair competition, and food safety laws, and must take on their responsibilities.

In a separate meeting on the same day, the regulator addressed food safety concerns related to live-streaming e-commerce. It said that some food items sold during recent live-streamed sessions contained excessive food additives or pesticide residues.

Representatives from various live-streaming platforms and influencer agencies attended that meeting, although the SAMR did not disclose any names.

The SAMR’s discussions with the three major food delivery players followed months of fierce competition, during which those companies offered a blizzard of discounts in a relentless battle for market share.

South China Morning Post