China Starts Probe Into Meituan as Internet-Industry Crackdown Widens

China Starts Probe Into Meituan as Internet-Industry Crackdown Widens [ad_1]

China Starts Probe Into Meituan as Internet-Industry Crackdown Widens | Latest News Live | Find the all top headlines, breaking news for free online April 27, 2021

Food-delivery couriers for Meituan in Beijing on Wednesday. Meituan acts as an internet market for eating places and different retailers.



Photo:

Yan Cong/Bloomberg News

China is investigating supply large

Meituan


3690 3.41%

over suspected antitrust practices, the newest transfer by Beijing to tighten its grip on the country’s powerful tech industry.

China’s high market regulator, the State Administration for Market Regulation, on Monday mentioned it had launched a probe into Hong Kong-listed Meituan for suspected monopolistic behaviors, together with the apply of “er xuan yi,” or “choose one out of two.” The apply prevents retailers from promoting their items on a number of platforms.

Meituan’s Hong Kong-listed shares had been barely decrease on Tuesday morning. They have misplaced a few third of their worth from a file excessive in mid-February. Just every week in the past, the Beijing-based firm raised nearly $10 billion from investors by promoting inventory and convertible bonds, and mentioned it plans to spend closely on new applied sciences that may automate deliveries.

Meituan, which acts as an online marketplace for eating places and different retailers, mentioned it might actively cooperate with the commerce regulator’s investigation and search to enhance its compliance administration. It added that its numerous companies are at the moment working usually.

The investigation comes after dozens of China’s largest expertise firms, together with Meituan, earlier this month publicly pledged to comply with antimonopoly laws after Beijing blocked the initial public offering of Ant Group Co. and hit tech large

Alibaba Group Holding Ltd.


BABA 0.27%

with a record $2.8 billion fine.

Meituan had mentioned in its pledge that it gained’t undertake unreasonable restrictions to pressure retailers into exclusivity measures.

The transfer on Monday additionally confirmed fears amongst some traders that Meituan can be the following goal after authorities concluded their monthslong probe into Alibaba and appeared set to develop the crackdown past the enterprise empire of

Jack Ma,

China’s best-known entrepreneur.

Meituan is China’s third-most beneficial web agency, behind videogame developer

Tencent Holdings Ltd.

and e-commerce large Alibaba, with a market worth of greater than $200 billion. Its shares have tripled previously 12 months as the pandemic triggered a world demand growth for on-line services.

The “er xuan yi” exclusivity apply has been of central concern for regulators as Beijing seeks to rein in China’s fast-growing web business. The SAMR repeatedly highlighted its scrutiny over such practices within the Alibaba probe and earlier this month ordered 34 tech corporations to revamp operations, particularly with respect to those exclusivity measures.

Copyright ©2020 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Appeared within the April 27, 2021, print version as ‘Meituan Probed on Antitrust Practices.’

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