Chinese official responds by holding public hearing on Meituan’s acquisition of stake in Malt Field

China News Service, Beijing, October 10 (Reporter Liu Liang) China’s State Administration for Market Regulation previously held a public hearing on Meituan’s acquisition of the equity in Malt Field. Xie Fang, deputy director of the Second Anti-Monopoly Department of the State Administration for Market Regulation, introduced the relevant circumstances of the case at a press conference held in Beijing on the 10th.

Xie Fang pointed out that Meituan’s acquisition of the equity in Malt Field was the first concentration of business operators case in the platform field that did not meet the reporting standards stipulated by the State Council of China and was required to be declared in accordance with the law. Meituan is the leading online catering takeout platform in China, while Malttian is mainly engaged in delivery aggregation platform services, connecting multiple third-party delivery capacity providers to provide delivery solutions for merchants. In 2024, the combined market share of both parties in China's domestic delivery aggregation platform market will exceed 50%. The State Administration for Market Regulation attaches great importance to this case and conducts review work strictly in accordance with the law.

After review, this concentration may have the effect of excluding and restricting competition in China's domestic delivery aggregation platform service market, which may affect small and medium-sized merchants' independent selection of transportation capacity and crowd out other third-party transportation capacity providers; at the same time, the concentration further strengthens Meituan's market control in China's domestic online catering takeout platform and instant retail service platform markets, which may enhance the stickiness of Meituan's ecological customers, affect the stability of distribution on other platforms, and increase the entry barriers to relevant markets. The State Administration for Market Regulation promptly informed the applicant of the review opinions of this case that may have the effect of eliminating or restricting competition, and the applicant submitted a conditional commitment plan.

To ensure an objective and fair review of the case, the State Administration for Market Regulation held a public hearing on whether the conditional commitment scheme could resolve competition concerns. Xie Fang said that this hearing legally invites competitors such as Taobao flash sales and JD.com, downstream customers such as flash sales and UU errands, industry associations, merchant representatives, rider representatives, and experts and scholars to participate. All parties participating in the meeting focused on core disputes such as the enforceability of the commitment plan and how to protect the legitimate rights and interests of all parties. They presented evidence, stated their opinions, and conducted cross-examination debates to fully express their opinions and achieve the expected results. This laid a solid foundation for the case to be made objectively and fairly in accordance with the Anti-Monopoly Law and other legal provisions.

Xie Fang said that the next step will be to promote the follow-up review of this case in accordance with the law, effectively maintain the order of fair competition in the distribution aggregation platform service market, protect the legitimate rights and interests of various business entities such as small and medium-sized merchants, riders, and prevent "involution" competition.