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Collin Furtado · · 1 min readChina slaps Meituan with $533m fine following monopoly probe
“China levied a US$533 million fine on Meituan for violating anti-monopoly regulations, ending a months-long probe that had weighed on the country’s food-delivery leader,” reported Bloomberg.
Details:
- The fine imposed by China’s State Administration for Market Regulation was equivalent to 3% of Meituan’s domestic revenue in 2020. The Chinese food delivery giant was also ordered to return 1.29 billion yuan (US$200 million) of deposits related to exclusivity arrangements.
- In addition, the company was also directed to improve its commission mechanism, beef up protections for delivery riders, and ensure restaurant partners’ legal rights are respected.
Dive deeper:
- Analysts had anticipated Meituan to be hit with a much higher fine – upwards of US$700 million – reported Bloomberg.
- In April, Alibaba incurred a much larger fine of US$2.8 billion following an antitrust probe conducted by the Chinese regulator. (Read: China’s link-blocking ban: panacea or Pandora’s box?)
Currency converted from Chinese yuan to US dollars: US$1 = 6.45 Chinese yuan
Editing by Arpit Nayak
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