China’s government has expanded its antitrust crackdown beyond Jack Ma’s technology empire, launching an investigation into suspected monopolistic practices by food-delivery behemoth Meituan.
The State Administration for Market Regulation is looking into alleged abuses including forced exclusivity arrangements known as “pick one of two,” employing the same language in a probe into Ma’s Alibaba Group Holding Ltd. that ended with a $2.8 billion fine. China’s third largest internet company recouped early losses to rise as much as 3.1% Tuesday after Nomura analysts estimated Meituan may have to fork over just 4.6 billion yuan based on Alibaba’s punishment.
The antitrust campaign has gathered pace in recent weeks, as regulators slapped a record fine on Alibaba, instructed affiliate Ant to overhaul its business and ordered 34 of its largest tech companies -- including Meituan -- to rectify any anti-competitive business practices within one month. Following the meeting with SAMR, the Beijing-based firm issued a pledge to abide by antitrust laws, saying it will maintain market order and won’t force merchants to “pick one of two” -- forcing them to select betweens Meituan or a rival -- through unreasonable methods.
