China imposes massive fines on major e-commerce platforms
China has imposed fines totaling $526 million on seven major e-commerce platforms over “ghost shop” violations and food safety breaches, News.Az reports, citing foreign media.
The penalties, amounting to 3.597 billion yuan, were issued by the State Administration for Market Regulation, which also confiscated what it described as “illegal” gains.
The companies fined include Shanghai Xunmeng Information Technology Co (PDD), Beijing Sankuai Technology Co (Meituan), Beijing Jingdong 360 Degree E-commerce Co (JD.com), Shanghai Lazhas Information Technology Co (formerly Ele.me, now Taobao Flash Purchase), Beijing Douyin Technology Co (Douyin), Zhejiang Taobao Network Co (Taobao), and Zhejiang Tmall Network Co (Tmall).
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Regulators said the platforms were involved in so-called “ghost delivery” practices as well as food safety violations.
Authorities ordered the seven companies to remove “ghost shops” that had not undergone proper review and to end partnerships with order-transfer platforms linked to such operations.
In addition, new food vendor listings—particularly in categories prone to misuse such as dessert and takeaway services—have been suspended for three to nine months.
By Nijat Babayev
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