The Chinese giant received a fine of 456 million euros for imposing exclusivity to restaurants that used its platform.
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It’s a setback for Meituan. The number one Chinese dining delivery was ordered to pay a fine of 3.4 billion yuan (456 million euros) for abuse of dominant position, Friday, October 8. The state administration for the regulation of the markets (SAMR) complains in particular for having imposed the exclusivity to the restaurateurs who used his platform.
In addition to this pecuniary sanction, the company will have to return to all its partners “exclusive deposits” collected to ensure their loyalty, or 173 million euros in total. The fine represents 3% of the turnover of Meituan in 2020, an amount bearable for the firm, and which should allow it to move forward, after a year soon from a campaign for the regulation of the giants of technology.
Beijing had attacked the online services mastodontes, with the annulment in Extremis, in early November 2020, from the IPO of ANT GROUP, the subsidiary of payment of Alibaba. Since then, a series of investigations and regulations have struck the big names in the tech. In turn, online finance, the monopolistic practices of online sales, the protection of user data, the exploitation of deliverymen and drivers, and private education have been targeted. This summer, the school support sector, which weighs hundreds of billions of euros, has been virtually annihilated when the authorities have forced companies in the sector to become non-profit entities.
The decision aimed at Meituan mainly concerns the obligation of exclusivity imposed on restaurateurs and sellers. This practice is common, but aroused the frustration of the first. In April, Alibaba had received a fine of 18.2 billion yuan, or 4% of the turnover of the company, for the same abuses with the sellers of his sales platforms. According to the SAMR statement, Meituan now controls 70% of the meal delivery market.
drop in profitability
“I was expecting a higher fine, because they had already been punished by local branches of the samr in previous years. There is less than Alibaba, and only 5% of the reserves of Cash of Meituan, so the company will have no trouble paying, explains Michael Norris, head of the strategy for Agency China, a consulting firm established in Shanghai. It can be said that this case is behind them, provided that They are in compliance, because the text indicates that Meituan will be evaluated each year for three years on the corrective measures adopted. “
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