Chinese State Administration for Market Regulation has announced an investigation into the possible monopolistic practices by the online-to-offline food-delivery platform Meituan. The probe on the third largest internet company in China comes close on the heels of the crackdown on Jack Ma’s Alibaba
Group Holdings and Ant Group in which a fine of $2.8bn was imposed on the tech behemoth. The Chinese government is concerned about the monopolistic practices by big business in China and has recently ordered 34 of its largest tech companies including Meituan to audit their internal practices and rectify their anti-competitive business practices. According to Bloomberg, the company could face a penalty of upto 10% of its revenue if implicated. The fine could be as high as ~$1.7bn based on its revenue of CNY114.8bn ($17.7bn) in 2020. The company had recently raised $9.98bn in a bid to take on its competitors.
Meituan’s 2.125% 2025s were down 0.32 to trade at 98 cents on the dollar and its 3.05% 2030s were up 0.08 to trade at 95.8 on the secondary markets.
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