China moves to outlaw food delivery price wars

The proposed regulations specifically target the imbalance of power between delivery giants and local merchants. Under the new framework, platforms would be strictly prohibited from forcing restaurants to participate in subsidy campaigns or compelling them to shoulder the financial burden of these aggressive promotions. By banning the sale of goods below cost and restricting the use of capital advantages to squeeze out smaller competitors, the government intends to stabilize the industry’s volatile competitive landscape.

These rules represent a significant shift in oversight for the nation's delivery platforms, which have long relied on heavy subsidies to capture market share. The regulator has opened the draft to public scrutiny through July 17, marking a clear signal that the era of unchecked market expansion through irrational competition is drawing to a close.