China's top market watchdog on Wednesday imposed administrative penalties on five leading community group-buying platforms for improper pricing that disrupted market order.
Chengxin Youxuan, a community group-buying platform under China's ride-hailing giant Didi, Duo Duo Maicai owned by e-commerce platform Pinduoduo, Meituan Youxuan under online platform Meituan and Nicetuan were fined 1.5 million yuan (about 232,300 U.S. dollars) each, according to an online statement released by the State Administration for Market Regulation.
It also fined the Wuhan-based group-buying platform Shixianghui 500,000 yuan.
According to the regulator, some community group-buying companies took advantage of the size of their funds to launch massive price subsidies in the latter half of 2020, which disrupted market order.
Some of these community group-buying companies dumped products at prices below cost to squeeze out competitors or monopolize the market, harming the legitimate rights and interests of other market players and violating the country's price law, the regulator said.
These platforms also used false or misleading pricing practices to lure consumers, it added.
