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China Probes Food Delivery Platforms Over Competition Practices

By  |  January 11, 2026

China’s top antitrust authorities have opened a formal investigation into competition practices in the country’s online food delivery sector, as regulators move to curb subsidy-fueled price wars that they say are distorting the real economy and intensifying what officials describe as “involution,” according to Bloomberg.

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    The probe will be led by the State Council’s anti-monopoly and anti-unfair competition committee and conducted under China’s antitrust law. The review will involve on-site inspections, interviews and surveys targeting delivery platforms, per Bloomberg, citing a statement released Friday by the State Administration for Market Regulation. Regulators said the goal is to identify potential monopoly risks, restore market order and promote fair competition across the sector.

    Authorities also instructed online food delivery platforms to “actively” cooperate with the investigation, enhance antitrust compliance efforts and take measures to prevent monopoly-related risks, according to Bloomberg.

    Major players in the market have already signaled their support. Alibaba Group Holding Ltd.’s Ele.me, Meituan and JD.com Inc. each said they would cooperate fully with the investigation, posting statements on their respective WeChat accounts, per Bloomberg.

    Read more: Food Delivery Giants Summoned by China’s Regulator to Promote Fair Competition

    The regulatory action follows a broader tightening of oversight in China’s retail and online commerce sectors. Beijing has increased scrutiny since 2025, particularly after Alibaba, Meituan and JD.com collectively spent billions of dollars on subsidies and incentives to gain market share in meal delivery, according to Bloomberg. Last year, competition among the three escalated into one of the most aggressive price wars the industry has seen, with deep discounts and consumer perks used to drive volume.

    The consequences of that strategy have been felt across the e-commerce landscape. Rampant discounting has weighed heavily on profitability, eroding margins throughout the industry, per Bloomberg. In November, Meituan attributed its first quarterly loss in nearly three years to “irrational competition,” underscoring the financial strain of its prolonged three-way battle with Alibaba and JD.com amid subdued consumer demand.

    China’s leadership has repeatedly emphasized the need to break cycles of “involution,” a term used to describe destructive forms of hyper-competition that produce diminishing economic returns.

    Source: Bloomberg