Online food delivery giants Meituan, summoned for price dumping vicious competition
Published: Jul 28, 2022 11:21 PM
A Meituan food delivery driver is seen in Beijing in February. Photo: cnsphoto
A Meituan food delivery man File Photo: cnsphoto

Hangzhou market regulator summoned online food delivery platforms Meituan and for talks on issues including price dumping competition and food safety on July 21, the regulator said on Thursday.

The summoned platforms are required to fulfill the responsibility of food safety management and the vicious competition at low prices of food and beverage businesses is strictly prohibited, according to a statement by the Hangzhou Administration for Market Regulation on Thursday.

Food safety is closely related to people's lives and health. Food delivery platforms should put food safety on top of their priorities and fulfill their responsibilities strictly according to the law. Low price vicious competition is often accompanied by potential food safety problems. The catering industry should further standardize operations, strictly prohibit vicious competition, and do not allow low price dumping to disturb market order, said the regulator.

The decision came after media exposed food safety problems of Pinhaofan, Meituan's group buying feature for food delivery. The topic has attracted 150 million views on Sina Weibo.

The incident revealed problems such as the lack of oversight on the food delivery platform and the absence of management guidance on the vicious competition of price dumping, said the Hangzhou market regulator.

The Hangzhou market regulator also required take-out food delivery platforms to seriously carry out self-examination and correction to ensure food safety, and prevent price dumping malicious competition and other related problems from happening again.