China fined on Wednesday five community group-buying platforms owned and backed by the likes of Meituan, Pinduoduo, Tencent Holdings, Alibaba Group and Didi Chuxing, citing “improper pricing behaviour”, reported Reuters.
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 RMB 1.5 million ($230,000) each, and that of Shixianghui RMB 500,000. Nicetuan and Shixianghui respectively count Alibaba and Tencent as investors.
These platforms had issued since the second half of 2020 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.