China targets food-delivery platform subsidies with new draft rules

Chinese regulators introduced draft regulations on Wednesday to curb the misuse of subsidies by food-delivery platforms, aiming to end 'irrational' price wars and predatory practices. The State Administration for Market Regulation (SAMR) proposed banning long-term, large-scale subsidies that disrupt market competition, coercing merchants into subsidy programs, and pricing goods below cost. Platforms must disclose subsidy data before and after campaigns. The rules, open for public comment until July 17, target practices like using capital advantages to seize market share and forcing businesses to bear subsidy costs. The crackdown reflects Beijing's broader effort to rein in intense competition in the sector, which has hurt businesses, delivery drivers, and consumers.