Beijing warns e-commerce giants over 618 price-war tactics

Key facts

• Beijing's market regulator summoned Alibaba, JD.com, Pinduoduo, Douyin, and RedNote on Thursday.
• The regulator cited misleading advertising, including 'billion-yuan subsidy' campaigns with actual spending below advertised amounts.
• Other issues included inadequate disclosure of promotional rules and failure to display merchant information.
• The regulator ordered the companies to rectify the problems.
• This follows a meeting last month where the regulator warned over a dozen internet platforms against involution-style competition.
• Involution-style competition refers to excessive rivalry that erodes profitability and market order.
• The 618 shopping festival is one of China's biggest online retail events, culminating on June 18.
• The Beijing Municipal Bureau of Market Supervision and Administration published the notice on its WeChat account.