China issues draft rules on food delivery subsidy to curb price wars

Alibaba Holding

Today 10:05

    BEIJING, June 17 (Reuters) - China's market regulator said on Wednesday it was seeking public comment on draft rules to regulate subsidies by food delivery platforms, citing price wars and "irrational competition" in the sector.
The draft rules would bar platforms from forcing merchants to join subsidy campaigns or bear subsidy costs, using capital advantages for monopolistic or unfair competition, or selling goods below cost, the State Administration for Market Regulation said.
The rules are open for public feedback through July 17.
     


 (Reporting by Ethan Wang and Ryan Woo; Editing by Louise Heavens)
 ((Ethan.Wang@thomsonreuters.com))