Draft rules (June 17) target long-term subsidies on food delivery apps. They bar forcing merchants to pay. Feedback until July 17; large coupons may drop.
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Are China’s Cheap Food Delivery Deals About to Change? New Rules May Be Coming
From near-free orders to massive coupons, food delivery deals in China can sometimes feel too good to be true. Now, regulators are moving to set clearer limits on long-term, large-scale platform subsidies.
On June 17, China’s market regulator released a draft document seeking public feedback on rules for food delivery platform subsidy practices.
Food delivery apps such as Meituan, JD Takeaway, and Taobao Flash Buy (formerly known as Ele.me), as well as other instant delivery platforms, are widely used in China for meals, groceries, drinks, and daily essentials.
The move comes after concerns over intense price competition among major delivery apps, including problems described by regulators as “competing on subsidies, prices, and traffic control.”
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According to the draft, platforms should not use long-term or large-scale subsidies to exclude or restrict market competition, or disrupt normal market order.
Platforms would also be prohibited from forcing restaurants and other merchants to join subsidy campaigns or bear the cost of subsidies. They should not use capital advantages to engage in monopoly or unfair competition, or sell goods at prices lower than their actual cost.
The draft also says platforms should disclose key information before and after subsidy campaigns, allowing public supervision.
For consumers, this does not mean food delivery discounts will immediately disappear. The draft is not yet a final rule, and authorities are still collecting public feedback until July 17.
If the rules are finalized, the most visible change may be how often large coupons, free-order campaigns, or extremely low-price deals appear on food delivery apps.
The proposed rules are part of China’s broader effort to reduce excessive price wars and promote fairer competition in online platform industries.
Source: 南方都市报
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