China’s Food Delivery War Meets Its First Serious Regulatory Signal
After Hong Kong market close on Friday (9 January), Chinese regulators said they had commenced an “investigation and assessment” on the food delivery competition in China.
This news came just a day after it emerged that Alibaba had told investors that it would resolutely increase investment to become market number 1 in food delivery and quick commerce.
This is thus far the most serious regulatory announcement since the food delivery and quick commerce war started in early 2025. Tens of billions of dollars have been burnt – more market value has been wiped out.
It is also interesting that the communication came from the relatively obscure “Office of the Anti-Monopoly and Anti-Unfair Competition Commission of the State Council”.
The creation of this agency in 2021 spooked some of the investors and analysts we knew well: they saw that as a sign that the regulatory crackdown on tech platforms launched that year was set to stay.
Below is the full text of the official communication – as well as our interpretation of the “Chinese official lingo” context.
For more understanding of the quick commerce and food delivery war in China, you can read Momentum Works Quick Commerce in China report released in November 2025.
The Office of the Anti-Monopoly and Anti-Unfair Competition Commission of the State Council Conducts an Investigation and Assessment of Market Competition in the Food Delivery Platform Services Sector
Recently, in accordance with the Anti-Monopoly Law of the People’s Republic of China, the Office of the Anti-Monopoly and Anti-Unfair Competition Commission of the State Council conducted an investigation and assessment of market competition conditions in the food delivery platform services sector.
[MW note: in Chinese official lingo, “conducted an investigation” means it has started work on the investigation, but has not yet completed the work. Also “investigation and assessment” signals a pre-enforcement, sector-wide regulatory action..]
In this regard, a responsible official from the Office of the Anti-Monopoly and Anti-Unfair Competition Commission of the State Council responded to questions from the media.
[MW note: When a regulator “responds to questions from the media” (答记者问) in an official release, it is not spontaneous journalism. It is a controlled regulatory communication tool. The objectives are:
- Pre-frames interpretation
- Signals policy intent without formal action
- Creates an enforcement paper trail
- Applies pressure to the whole industry at once]
Q: Could you introduce the background and key considerations behind the Office’s announcement to conduct an investigation and assessment of market competition in the food delivery platform services sector?
A: The CPC Central Committee and the State Council attach great importance to innovation and the healthy development of the platform economy. As an important component of China’s platform economy, the food delivery platform services sector has played a significant role in promoting consumption, expanding employment, and fostering innovation.
However, in recent periods, problems such as excessive subsidy competition, price wars, and traffic control have become increasingly prominent in the food delivery platform services sector. These practices have squeezed the real economy, intensified “involution-style” competition within the industry, and triggered strong reactions from all segments of society.
[MW note: “Traffic control” is a serious allegation where a platform uses algorithms or rules to influence merchant exposure and order distribution. ““Involution-style” competition” is a loaded political concept – one that the government has vowed to crack down since last year]
In order to promote lawful and compliant operations by food delivery platforms, ensure fair and orderly competition, and foster a market order characterized by high quality matched with fair pricing and healthy competition, the Office of the Anti-Monopoly and Anti-Unfair Competition Commission of the State Council (hereinafter referred to as the “Commission Office”), in accordance with the Anti-Monopoly Law of the People’s Republic of China, has decided to conduct an investigation and assessment of market competition conditions in the food delivery platform services sector.
This investigation and assessment is an important measure by the Commission Office to express competition concerns, assess monopoly risks, and regulate market order. Through methods such as on-site verification, in-person interviews, and questionnaire surveys, the Commission Office will gain an in-depth understanding of competitive practices among food delivery platforms, widely solicit opinions from platform-based operators, workers in new forms of employment, consumers, and other stakeholders, comprehensively examine market competition conditions, organize analytical assessments, transmit regulatory pressure, and propose corresponding enforcement measures.
[MW note: “express competition concerns” in the Chinese official logo pretty much means a formal warning. “Transmit regulatory pressure” essentially means applying pressure without issuing fines – this is usually done before rectification campaigns.]
Food delivery platforms are required to actively cooperate with the investigation and assessment, strictly fulfill their primary responsibilities for antitrust compliance, effectively prevent and mitigate monopoly risks, participate fairly in market competition, and promote innovation and the healthy development of the food delivery platform services sector.
[MW note: “strictly fulfill their primary responsibilities for antitrust compliance” means demanding that the platforms place the burden of compliance on themselves.]
Meituan promptly issued a statement (below). Likely the platforms have already been prebriefed by the regulators, or they are already on high alert:
Meituan Firmly Supports the State’s Investigation and Assessment of Competition in the Food Delivery Market
On the afternoon of January 9, the Office of the Anti-Monopoly and Anti-Unfair Competition Commission of the State Council conducted an investigation and assessment of market competition conditions in the food delivery platform services sector. Meituan firmly supports this initiative and will fully cooperate with the relevant work.
In recent periods, irrational competitive practices such as price wars, excessive subsidy competition, and traffic control have become increasingly prominent in the food delivery market. Meituan has repeatedly called on the industry to return to rational competition and has firmly opposed “involution-style” competition. Taking this investigation as an opportunity, Meituan will work together with other platforms in the industry to jointly fulfill the responsibilities of market participants, participate fairly in market competition, and promote innovation and the healthy development of the food delivery platform services sector.
