FX.co ★ China Tightens Grip on Delivery Sector Pricing

China's State Administration for Market Regulation has unveiled draft regulations aimed at enhancing competition within the food delivery industry, according to a report from national broadcaster CCTV. These proposed regulations seek to establish limits on fees imposed on restaurants, increase transparency concerning subsidies and discounts, and restrict the kinds of charges that platforms can demand from merchants. A noteworthy aspect of these rules is the prohibition on platforms forcing merchants to subsidize promotions, a practice that has seen significant growth in prevalence by 2025. This initiative reflects Beijing's ongoing efforts to curb the dominance of major tech platforms and safeguard small businesses, particularly as food delivery continues to play a crucial role in urban consumption.