China's State Administration for Market Regulation (SAMR) proposed draft regulations on June 17 aimed at restricting subsidy campaigns in the food delivery sector that disrupt fair market competition and damage the broader economy [1, 2]. The draft rules ban food delivery platforms from using prolonged, large-scale subsidies that artificially reduce prices to attract orders, leading to predatory pricing and coercion of merchants and delivery drivers [1, 2].
SAMR stated these practices harm the interests of merchants, delivery drivers, and consumers, ultimately squeezing the real economy [1]. The draft requires platforms to publicly disclose subsidy data both before and after campaigns to increase transparency [2].
Major food delivery companies including Meituan, Alibaba's Taobao Shangou, and JD.com have voiced support for the proposed rules and pledged commitment to fair competition [1]. The sector remains a key driver of national consumption but has seen sluggish growth amid fierce competition among platforms [1].
The public can submit comments on the draft regulations until July 17, 2026 [1, 2]. The final rules are expected after assessing feedback. Enforcement will target unfair competition tactics that undermine merchants and delivery workers through distorted subsidy practices.
