CLEANING UP BUSINESS MONOPOLY AND ANTI-COMPETITIVE PRACTICES
A number of regulators in China handling the crackdown on its biggest tech giants, which are being punished for exhibiting too many monopolistic tendencies, among other transgressions, came through with another major fine at MEITUAN, and the fine handed down on Friday (08 October) was surprisingly small: the firm was hit with a fine of 3.44 billion yuan ($533 million) over its alleged monopolistic practices. The fine, which was barely 1/6th the size of the $2.8 BILLION hit that Alibaba took, plus the additional $15 BILLION Alibaba has committed for the government's COMMON PROSPERITY initiative, a broad initiative to improve the livelihood of the general populace and reduce the wealth inequality across the society.
The anti-monopoly probe into Meituan -- which began in April -- might be officially resolved according to the regulator, was said to be equivalent to about three per cent (3%) of Meituan’s TOTAL DOMESTIC REVENUE of 114.7 billion yuan ($17.8 BILLION) last year, per the State Administration for Market Regulation (SAMR), China’s main antitrust watchdog.
In the latest news out of China to suggest its crackdown on big tech has finally reached its conclusion, Meituan's fine was much smaller than anticipated, but China's market regulator also ordered Meituan TO REFUND exclusive cooperation DEPOSITS paid by merchants, totaling 1.29 billion yuan ($200 million).
The probe mainly focused on Meituan's involvement in the ANTI-COMPETITIVE INDUSTRY STANDARD known as "pick one of two". Effectively, the biggest Chinese tech firms would sign on restaurants or other businesses to work with their service, but if those smaller business chose to ALSO LIST ON ANOTHER PLATFORM, they would be BOOTED OFF of Meituan.
"We accept the penalty with sincerity and are determined to ensure our compliance with the decision and its terms," Meituan said in a statement.
Now imagine if the big business owners will learn such humility and grace... enforced by state, to correct their wrong business practices (monopolistic tendencies, anti-competitive practices, bad working conditions, etc) for the sake of the greater society, incl. their employees and business partners, and course, the consumers!
The Chinese government doesn't want the Big Corporations and their billionaires running the state like they do in other part of the world. PLUTOCRACY: government run by the elite, exclusively very wealthy class... buying up the politicians through political donations, various lobbies, high executive jobs for ex-government officers or politicians, ‘Revolving Door’ practices or switching jobs between governmental regulators and the corporations under their supervisions, etc.
Additionally, the company, founded by the 42-year-old billionaire Wang Xing, was previously urged to IMPROVE ITS WORKERS’ WORKING CONDITIONS, which have long been criticized as poor. In July, State Administration for Market Regulation (SAMR) and six other government agencies ordered Meituan to pay its DELIVERY RIDERS more than the country’s minimum wage, and to release them from UNREASONABLE DEMANDS made by the company app's algorithms.