Key facts
- China has proposed draft regulations for food delivery platforms.
- The regulations aim to curb the misuse of subsidies.
- The rules seek to end 'irrational competition'.
- Practices like selling goods at a loss will be banned.
- Coercing merchants into subsidy programs will be prohibited.
Chinese authorities have introduced draft regulations designed to curb the misuse of subsidies by food delivery platforms. The proposed rules aim to address and end 'irrational competition' within the sector. Key provisions in the draft regulations include a ban on selling goods at a loss and prohibiting the coercion of merchants into participating in subsidy programs. These measures are intended to foster a more stable and equitable market environment for food delivery services operating in China. The regulations signal a significant intervention by the government to regulate the practices of major players in the rapidly growing food delivery industry.