Pinduoduo Inc logo

PDD - Pinduoduo Inc News Story

$132.8 -0.5  -0.4%

Last Trade - 19/04/21

Sector
Technology
Size
Large Cap
Market Cap £113.74bn
Enterprise Value £105.98bn
Revenue £6.54bn
Position in Universe 70th / 6849

UPDATE 1-China fines group buying platforms owned by Meituan, Pinduoduo over improper pricing

Wed 3rd March, 2021 4:23am
By Sophie Yu and Brenda Goh
    SHANGHAI, March 3 (Reuters) - China fined on Wednesday five
community group-buying platforms owned and backed by the likes
of Meituan  3690.HK , Pinduoduo  PDD.O , Tencent Holdings
 0700.HK , Alibaba Group  9988.HK  and Didi Chuxing, citing
"improper pricing behaviour".
    The State Administration of Market Supervision said it had
decided to fine the registered firms behind Didi-owned Chengxin
Youxuan, Pinduoduo's Duo Duo Maicai, Meituan Select, and
Nicetuan 1.5 million yuan ($230,000) each, and that of
Shixianghui 500,000 yuan. Nicetuan and Shixianghui respectively
count Alibaba and Tencent as investors. 
    These platforms had since the second half of 2020 issued a
large amount of price subsidies which disrupted market order,
the regulator said. Some of them also used false or misleading
price tactics to "trick" consumers into buying from them, it
added. The companies did not immediately respond to requests for
comment.
    In China, community group buying refers to a practice of
allowing groups of local residents to get discounts by buying
together in bulk. It attracted attention from the regulator late
last year who said internet platforms were competing for market
share with unreasonably low prices.  urn:newsml:reuters.com:*:nL1N2J20KQ
    China has vowed to strengthen oversight of its big tech
firms, which rank among the world's largest and most valuable,
citing concerns that they have built market power that stifles
competition, misused consumer data and violated consumer rights.
    
    ($1 = 6.4645 yuan)

 (Reporting by Sophie Yu and Brenda Goh; Additional Reporting by
Yingzhi Yang in Beijing; Editing by Clarence Fernandez and
Stephen Coates)
 ((brenda.goh@thomsonreuters.com; +86 (0) 21 2083 0088; Reuters
Messaging: brenda.goh.thomsonreuters.com@reuters.net))
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