China Tightens Reins on Food Delivery Market Competition

China's central government will investigate and evaluate food delivery platforms to ensure fair competition. Issues like excessive subsidies and price wars have intensified unhealthy competition. The State Council aims to establish a marketplace with high quality, reasonable pricing, and robust, healthy competition.

The Chinese government's decision to scrutinize food delivery platforms reflects an effort to curb unfair competitive practices in the industry. On Friday, the market regulator announced plans to examine platform operations.

Concerns have arisen over excessive subsidies and aggressive price wars, said to distort the real economy and exacerbate unhealthy "involution-style" competition, as noted in the regulator's statement.

Through this investigation, the State Council aims to foster an environment characterized by high-quality offerings, fair pricing, and genuinely healthy competition, further solidifying its stance on orderly market conduct.

(With inputs from agencies.)