- China's Antitrust regulator is preparing to fine Meituan for allegedly infringing its dominance position a fine of about $1 billion, the Wall Street Journal reported on Friday citing people familiar with the matter.
The penalty could be announced in the coming weeks, the newspaper said https: on.wsj.com 3 ChY 7 pX, adding that the food delivery giant would be required to revamp its operations.
Meituan did not immediately respond to a request for comment.
China has in recent months rolled out sweeping rules to crack down on the tech and private tutoring sectors.
The State Administration of Market Regulation launched an antitrust probe into Meituan in April focusing on a practice whereby a company forces vendors to use its platform exclusively.
The SAMR in April imposed a record $2.75 billion fine on the e-commerce giant Alibaba over the same practices.
According to Trustdata, Meituan, which competes with Alibaba-backed Ele.me among others, held an estimated 68.2% share of China's food delivery market in the second quarter of 2020, according to Alibaba. Its businesses also include bike sharing, community buying and restaurant reviews.
In March, SAMR was among five backers or owners of community groups buying platforms fined from Meituan over improper pricing behavior related to subsidies.