China's antitrust body to fine Meituan about $1 billion

Asian Tech Press -- China's antitrust body plans to fine Meituan (3690.HK), one of delivery food e-commerce giants in the country, about $1 billion, according to the latest report from The Wall Street Journal.

The report said that the penalty may be announced in the coming weeks, and asked Meituan to revamp its operations which were alleged of “two-choose-one” and other illegal behaviors.

In late April this year, China's top market regulator, the State Administration for Market Regulation (SAMR), launched an investigation on Meituan, which was accused of conducting anticompetitive behaviors such as “two-choose-one”.

“Two-choose-one” means that Meituan requires merchants to sign exclusive contracts. If they don't, the e-commerce platform will charge a higher commission.

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