Community group purchasing permits groups of individuals residing in the same city or area to purchase groceries and other items in bulk at a discounted rate, a growing practice that has been eased by large technology businesses. Tech platforms advantage because shipping and other relevant prices are sharply reduced.
China’s State Administration for Market Regulation explained that it lately lacked six firms, such as e-commerce platforms Alibaba, JD.com and Pinduoduo, gambling firm Tencent, food shipping company Meituan, and ridesharing company Didi Chuxing to discuss the possible consequences of community group purchasing.
The ruler used the assembly to warn against monopolistic practices, such as price-fixing and predatory pricing strategies. There are a plethora of boundaries which firms in China are prohibited by law to cross country, like the usage of exclusivity contracts with retailers, market regulators said in a prepared statement.
Chinese technology giants often engage in price wars to obtain market share. Regulators during the assembly mentioned”dumping,” if a business flooding the market with products at below-market costs to push competition.
Included in a recent deal from the stage Meituan, two lbs of honeydew melon may be had for as little as $1.
The Administration for Economy Regulation also cautioned against illegally gathering and using customer information.
There’s a wider push from Beijing to rein in the country’s burgeoning internet platforms. Last month, China published draft regulations to clamp down on anti-competitive clinics like the one’s exclusive merchant arrangements.
A similar drive is happening in the U.S., especially targeting advertisements.
Before this month, the Federal Trade Commission accused Facebook of purchasing up its rivals instead of competing together and is calling for Facebook’s imports of WhatsApp and Instagram to become unwound.
Instagram was obtained by Facebook in 2012 two years after the business was set up and users exploded, possibly prying eyes, and advertising bucks, from Facebook.