Exclusivity is coercion dressed up as a contract
In the ongoing reckoning between state authority and platform power, China's market regulator has turned its gaze toward Meituan, the nation's dominant food delivery service, opening an antitrust investigation into practices that compel merchants to choose loyalty over competition. The probe is not an isolated act but part of a deliberate reshaping of the rules governing China's vast digital economy — one that has already claimed a record $2.8 billion fine from Alibaba and placed dozens of internet giants under formal scrutiny. Beijing appears to be signaling that the era of unchecked platform expansion, built on exclusivity and market capture, is giving way to a new regulatory order.
- Meituan's 'pick one of two' exclusivity policies — forcing merchants to abandon rival platforms — have drawn the direct attention of China's most powerful market regulator.
- The investigation lands just days after Meituan raised nearly $10 billion in fresh capital, casting an immediate shadow over how those funds may be deployed.
- Alibaba's $2.8 billion fine and Ant Group's forced restructuring have already demonstrated that Beijing is prepared to act with historic force against platform monopolies.
- Thirty-four internet companies, including Tencent and Pinduoduo, have been given one month to dismantle anti-competitive practices — a sweeping deadline that underscores the urgency of the crackdown.
- Meituan has pledged full cooperation with authorities, but the probe signals that compliance promises alone will no longer be sufficient in China's redrawn competitive landscape.
China's State Administration for Market Regulation announced Monday that it is investigating Meituan, the country's leading food delivery platform, for suspected monopolistic behavior. At the center of the probe are so-called 'pick one of two' arrangements — a widespread practice in which platforms pressure merchants into selling exclusively through their service, effectively locking out competitors and concentrating market power.
Meituan responded through a Weibo statement pledging full cooperation and emphasizing that its operations remain normal. The company competes directly with Alibaba's Ele.me in a market where platform dominance determines which restaurants reach which customers — making exclusivity arrangements a powerful and contested tool.
The investigation is part of a broader government campaign against anti-competitive behavior in China's tech sector. Alibaba was fined a record $2.8 billion earlier this month, and its financial affiliate Ant Group was forced to restructure under tighter regulatory oversight — a dramatic fall for a company whose IPO had been halted just before its scheduled debut. Separately, officials ordered 34 internet companies including Tencent and Pinduoduo to eliminate anti-competitive practices within a month.
New anti-monopoly guidelines released in February explicitly target exclusivity contracts and predatory subsidy strategies — the very tactics that fueled China's tech boom. The timing of Meituan's probe is particularly striking given that the company had raised nearly $10 billion just days earlier, funds it said would go toward expanding delivery technologies. Under the new regulatory climate, those investments will face far greater scrutiny than they once would have.
China's market regulator announced Monday that it was opening an investigation into Meituan, the country's dominant food delivery platform, over suspected monopolistic behavior. The State Administration for Market Regulation said it would examine the company's exclusivity policies—arrangements known colloquially as "pick one of two"—that require merchants to sell their goods and services exclusively through Meituan's platform rather than competing services. These practices have become standard across China's e-commerce landscape, where platforms routinely pressure vendors into exclusive relationships to lock in market share and prevent rivals from accessing the same merchants.
Meituan responded swiftly through a statement posted on Weibo, saying it would cooperate fully with authorities and work to strengthen its compliance practices while protecting consumer interests. The company emphasized that its various business operations were proceeding normally. The food delivery firm competes directly with Alibaba's Ele.me platform in a market where dominance translates directly to control over which restaurants can reach which customers.
The investigation arrives as Beijing intensifies its scrutiny of internet companies across the economy. Earlier this month, regulators had fined Alibaba a record $2.8 billion for anti-competitive conduct. That same enforcement action forced Alibaba's financial affiliate, Ant Group, to restructure itself as a financial holdings company and accept stricter regulatory oversight—a dramatic reversal for a company whose initial public offering had been halted just days before its scheduled stock market debut the previous year.
The government's focus extends well beyond these two giants. Officials recently ordered 34 internet companies—a list that includes gaming powerhouse Tencent Holdings and e-commerce competitor Pinduoduo—to eliminate anti-competitive practices within a month or face consequences. In February, Beijing released new anti-monopoly guidelines that explicitly target the kinds of arrangements now under scrutiny: exclusivity contracts, aggressive subsidy wars designed to eliminate competitors, and other tactics that prioritize market dominance over fair competition.
The timing of the Meituan investigation is notable given the company's recent financial moves. Just days before the regulatory announcement, Meituan had raised nearly $10 billion through a sale of convertible bonds and additional shares. The company stated it would deploy those funds toward developing and expanding its delivery technologies—investments that, under the new regulatory environment, will likely face closer examination for their competitive implications. The probe signals that Beijing's patience with the unchecked expansion strategies that defined China's tech boom has fundamentally shifted.
Citações Notáveis
Meituan said it would actively cooperate with authorities to improve compliance and protect consumers' rights— Meituan statement on Weibo
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Why does it matter whether a restaurant has to pick one delivery platform or can use multiple?
Because the merchant's survival depends on reaching customers. If Meituan controls 60 percent of the market and forces exclusivity, restaurants that refuse lose access to the majority of orders. It's not really a choice.
So this is about power imbalance, not about the practice itself?
Exactly. In a fragmented market with many platforms, exclusivity might be negotiable. But when one player dominates, it becomes coercion dressed up as a contract.
Why is Beijing cracking down now, after letting these companies grow so large?
The companies grew too large, too fast, and too visibly. Once Alibaba's IPO was blocked and Ant Group's restructuring became public, the government signaled a shift. Now they're enforcing rules that were always theoretically in place.
What does Meituan lose if it can't use these exclusivity deals?
Leverage. Without exclusivity, restaurants can list on multiple platforms simultaneously. That means Meituan has to compete on service quality and pricing rather than simply locking merchants in.
And the $10 billion Meituan just raised—does that change anything?
It shows confidence, but it also puts them in a spotlight. That money was supposed to fund expansion and technology. Now regulators will watch how they spend it, looking for subsidies designed to crush competitors.