China has launched a market competition probe and assessment for its food delivery platforms, reports the South China Morning Post. Analysts said the move was an affirmation of the country’s determination to continue to combat self-defeating competition.
“Recently, issues such as excessive subsidies, price wars and control over traffic flow in the online food delivery platform service industry have become prominent,” according to a statement issued by the Anti-Monopoly and Anti-Unfair Competition Commission of the council, China’s cabinet.
“These practices have squeezed the real economy and intensified ‘involutionary’ competition within the industry, drawing strong reactions from various sectors of society.”
The assessment will be conducted through on-site inspections, in-person interviews and questionnaires to gain a detailed understanding of competition among food delivery platforms, the statement said, in addition to soliciting views from merchants, workers and consumers operating under or using the platforms.