China imposed a $533 million fine on Meituan for violating anti-monopoly laws, ending a months-long investigation into the firm, according to a report by Bloomberg on Friday.
- The State Administration for Market Regulation fined the company 3.44 billion yuan, totaling 3% of its 2020 domestic revenue. The company is also required to return 1.29 billion yuan of deposits obtained from exclusivity deals.
- The Billionaire Wang Xing’s firm was directed to improve its commissions mechanism to protect the legal rights of restaurant partners and improve protections for its delivery riders.
- In a statement, Meituan acknowledged and accepted the fine and committed to implement the regulators’ instructions as well as promote fair competition.
- The antitrust regulator had announced a probe into the company in April, weeks after imposing a record $2.8 billion fine on Alibaba Group Holding Ltd. For abusing its market dominance.
Since the imposition of the fine, the tech crackdown has heightened other aspects of the major digital industry, including a sweeping crackdown on online education and the launch of a cybersecurity probe into Didi Global Inc. Meituan up +2.07%