China Slaps Major E-Commerce Platforms with USD526M Fine
The fines, which amount to 3.597 billion yuan, were issued by the State Administration for Market Regulation, which also ordered the seizure of what it described as “illegal” profits linked to the violations.
According to media, the companies penalized include Shanghai Xunmeng Information Technology Co (PDD), Beijing Sankuai Technology Co (Meituan), Beijing Jingdong 360 Degree E-commerce Co (JD.com), Shanghai Lazhas Information Technology Co (formerly Ele.me, now Taobao Flash Purchase), Beijing Douyin Technology Co (Douyin), Zhejiang Taobao Network Co (Taobao), and Zhejiang Tmall Network Co (Tmall).
Regulators said the enforcement action targets so-called “ghost delivery” schemes and multiple food safety breaches tied to online ordering systems.
Authorities have ordered the platforms to eliminate “ghost shops” that failed to undergo proper verification and to cut ties with order-transfer intermediaries connected to the illicit operations.
In addition, officials suspended the registration of new food vendors—particularly in high-risk categories such as dessert and takeaway services—for periods ranging from three to nine months, tightening oversight of China’s fast-growing online food delivery sector.
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