To regulate subsidy practices by food delivery platforms, the State Administration for Market Regulation, based on provisions of the Anti-Monopoly Law of the People's Republic of China, the Anti-Unfair Competition Law of the People's Republic of China, the Price Law of the People's Republic of China, the E-Commerce Law of the People's Republic of China, and the Food Safety Law of the People's Republic of China, has conducted extensive research and deliberations after soliciting broad input from relevant stakeholders, and has drafted the 'Ten Guidelines on Regulating Subsidy Practices by Food Delivery Platforms (Draft for Public Comment)' (hereinafter referred to as the 'Draft for Public Comment'). Public comments are invited from the date of issuance until July 17.
In recent months, food delivery platforms have increasingly engaged in practices such as competing through subsidies and pricing while controlling traffic, which has harmed the interests of merchants operating on the platforms, delivery riders, and consumers, squeezed the real economy, and intensified cutthroat competition within the industry. An investigation and assessment by the Office of the State Council Anti-Monopoly and Anti-Unfair Competition Committee into market competition in the food delivery sector found that domestic platforms have leveraged their capital advantages to capture market share, coerced platform-based merchants into participating in subsidy campaigns, and triggered irrational competitive dynamics. There is an urgent need to regulate subsidy practices by food delivery platforms, guide them toward lawful and compliant operations, and foster healthy market competition.
The draft for public comment primarily comprises four key elements:
First, it clarifies overarching principles: platforms must not exclude or restrict market competition or disrupt market order through long-term, large-scale subsidies.Second, it specifies concrete requirements: platforms must not compel merchants on their platforms to participate in subsidy programs or bear subsidy-related costs; they must not exploit capital advantages to engage in monopolistic or unfair competitive practices; and they must not sell goods below cost.
Third, it outlines supervisory measures: platforms must publicly disclose information before launching subsidy activities and after implementation, specifying key details subject to public oversight.
Fourth, it highlights legal risks: it reminds food delivery platforms of relevant laws governing subsidy practices and the legal consequences of conducting subsidies in violation of regulations.
Next, the State Administration for Market Regulation will further revise and refine the draft based on feedback received, expedite its formal issuance, standardize subsidy practices by food delivery platforms, promote a market order characterized by quality-based pricing and healthy competition, and support innovation and sustainable development in the industry.