Food delivery riders brave the rain to fulfill deliveries for customers in Beijing on August 27, 2025. The Chinese capital city reported heavy rain on the day, with some places seeing torrential rain. Photo: VCG

The anti-monopoly and anti-unfair competition body of China's market supervision authority  has formally launched an investigation into market competition conditions in the food delivery platform sector to curb cutthroat "rat race" competition, according to an official announcement on Friday.

The decision, made in accordance with the Anti-Monopoly Law, aims to address growing concerns over unhealthy competitive practices that have intensified in recent months on food delivery platforms, said the General Office of the Anti-Monopoly and Anti-Unfair Competition Commission, according to a statement released by the State Administration for Market Regulation (SAMR). 

China has attached high importance to the innovative and healthy development of the platform economy. The food delivery sector, as a vital part of China's platform economy, has significantly contributed to stimulating consumption, expanding employment and fostering innovation, said the statement.

However, it also pointed out that excessive subsidies, aggressive price wars and traffic monopolization have become prominent issues. These practices have squeezed profits in the real economy, exacerbated "rat race" competition within the industry and sparked widespread public discontent.

The investigation seeks to promote lawful and compliant operations, ensure fair and orderly competition and cultivate a market environment based on quality-driven pricing and healthy rivalry. The probe will employ multiple methods to thoroughly examine the competitive behavior of food delivery platforms.

The office will solicit opinions from various stakeholders, including platform merchants, consumers, new employment groups such as delivery riders, and other parties. It will also conduct comprehensive analysis and propose targeted rectification measures.

Food delivery platforms will be required to actively cooperate with the investigation, strictly fulfill their primary responsibility for anti-monopoly compliance, effectively prevent and mitigate monopoly risks, participate fairly in market competition, and contribute to the innovative and sustainable development of the industry, according to the office.

The announcement comes amid ongoing regulatory efforts to curb disorderly competition in the sector. On December 4, 2025, the SAMR issued the national standard of basic requirements for food delivery platform services management, which explicitly prohibits platforms from forcing merchants to participate in promotions, shifting promotional costs onto merchants or riders, or restricting merchants' independent pricing rights.

Major platforms, including Meituan, Ele.me and JD Takeaway, quickly pledged to implement the new standard after the December announcement, promising more transparent and fair rules while protecting the legitimate rights of consumers, merchants and riders, according to the Xinhua News Agency.

Global Times