China fines food delivery giant Meituan for monopolistic behaviour | Malay Mail

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BEIJING, Oct 8 — China has fined food delivery giant Meituan 3.4 billion yuan (RM2.2 billion) for monopolistic practices and ordered it to undertake a “comprehensive rectification”, the market watchdog said today.  Authorities have launched a crackdown on a range of homegrown tech...

BEIJING, Oct 8 — China has fined food delivery giant Meituan 3.4 billion yuan for monopolistic practices and ordered it to undertake a “comprehensive rectification”, the market watchdog said today.

Meituan has been under fire since market regulators launched an investigation into the group in April, with particular scrutiny paid to the working conditions of its millions of delivery drivers, who are often employed as third-party contractors without legal protections or worker benefits. It added that Meituan’s behaviour “eliminates and restricts market competition... weakens platform innovation power” and “damages consumers’ interests”.

Chinese authorities have since ordered online food delivery platforms to guarantee basic labour protections for delivery riders, such as a base income above minimum wage and access to insurance coverage.

 

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