Meituan and Alibaba vowed to curb “disorderly competition” and cease the price-based rivalry that’s threatened to pressure margins and prompted warnings from government agencies https://t.co/rMEkWI6meD
🇨🇳MEITUAN URGES INDUSTRY TO BUILD HEALTHY ECOSYSTEM FOR SUSTAINABLE GROWTH IN FOOD SERVICES. TAOBAO & ELEME: FIRM AGAINST CUTTHROAT COMPETITION, COMMITTED TO COLLABORATIVE WIN-WIN ECOSYSTEM. JD REAFFIRMS ANTI-OVERCOMPETITION STANCE, VOWS TO CURB UNFAIR PRACTICES AND BUILD A https://t.co/rJLPS5RLMH
Meituan pledges to restrict below-cost promotional sales statement
China’s National Development and Reform Commission said it will tighten oversight of “disorderly” competition and strengthen regulation of market pricing, promising follow-up measures to ensure companies set “logical” prices and maintain a sustainable trading environment. In separate statements issued soon after the agency’s comments, food-delivery giant Meituan said it will restrict below-cost promotional sales and called on the industry to build a healthier ecosystem. Alibaba Group’s Taobao marketplace and Ele.me delivery service, along with JD.com, also pledged to avoid cut-throat pricing and reaffirmed commitments to fair competition. The coordinated response from China’s largest e-commerce and on-demand platforms underscores mounting regulatory pressure aimed at curbing aggressive price wars that have eroded margins across the sector. The NDRC did not detail penalties but signaled that stronger enforcement is forthcoming to promote “sustainable growth” in consumer services.