China launches market competition investigation into food delivery industry

China's State Council has launched a market competition investigation and assessment of the country's food delivery platforms, China's top market regulator said on Friday.

The investigation was initiated by the office of the anti-monopoly and anti-unfair competition commission under the State Council in accordance with the country's anti-monopoly law, the State Administration for Market Regulation said.

A commission official noted that while the food delivery platform service industry has played crucial roles in stimulating consumption, expanding employment and fostering innovation, prominent issues have recently emerged in the sector, including excessive subsidies, price wars and traffic-flow control challenges.

"These practices have squeezed the real economy, intensified involution competition within the sector, and drawn strong reactions from various sectors of society," the official said, adding that the probe aims to promote lawful, compliant and fair competition within the food delivery platform industry, and to establish a market order characterized by quality-based pricing and sound competition.

The assessment will involve on-site inspections, in-person interviews and questionnaires to gain an in-depth understanding of the competitive conduct of these platforms, and opinions will be solicited from stakeholders, including merchants, workers and consumers, the official said.

It was noted that food delivery platforms are required to cooperate actively with the investigation and assessment, participate fairly in market competition, and contribute to the innovation and healthy development of the industry. ■