Review №18 of Chinese Antitrust News from the Experts of the BRICS Competition Centre
- EU Launches In-Depth Investigation into the JD.com–CECONOMY Transaction
- UBS: Gig Economy Oversupplied with Labor Due to Excessive Subsidies
- Campaign Against Online Piracy
- Fruit Market Withdraws Exclusive Dealing Requirement
- Safety Inspection of Food Delivery Platforms
- Episodes 7 and 8 of Overseas Antitrust Regulation: Spain and Germany
EU Launches In-Depth Investigation into the JD.com–CECONOMY Transaction
The European Commission has opened an in-depth investigation into Chinese e-commerce giant JD.com’s proposed acquisition of German retail company CECONOMY under the Foreign Subsidies Regulation (FSR).
The Commission is concerned that foreign subsidies may be involved in the transaction and could distort the EU internal market. It is also examining whether the transaction could enable the merged entity to pursue investment and business strategies that may affect competition within the internal market.
As part of the investigation, the Commission will assess, among other things:
- Whether foreign subsidies allegedly received by JD.com distorted the transaction process by influencing the outcome of negotiations;
- Whether such alleged subsidies could strengthen the competitive position of the merged company and have a negative impact on the internal market following the transaction.
The Commission received notification of the transaction on 17 April 2026 and now has 90 working days (until 2 October) to reach a decision.
The China Chamber of Commerce to the EU noted that this is the first time a concentration involving a Chinese company has been subjected to an in-depth investigation under the new FSR. CCCEU expressed hope that the procedure would adhere to the principles of legal certainty, proportionality, and non-discrimination.
Earlier, in January 2025, China’s Ministry of Commerce concluded that certain EU practices under the Foreign Subsidies Regulation constituted barriers to trade and investment and called for corrective measures.
Sources: European Commission, WeChat
UBS: Gig Economy Oversupplied with Labor Due to Excessive Subsidies
Online reports citing a UBS study have circulated analysis of China’s instant delivery market. The report suggests a significant oversupply of labor: the total number of registered couriers across all platforms is approaching 20 million, while only around 4 million [1] would be needed to meet current demand.
This situation is attributed to a subsidy war among food delivery platforms. Collectively, the three market leaders reportedly spent more than RMB 150 billion (approximately USD 22 billion) on subsidies. As subsidies gradually declined toward the end of 2025, user enthusiasm weakened, order volumes failed to reach expected levels, and the large number of recruited couriers remained in the market. To mitigate substantial losses, platforms began cutting costs, resulting in a continuous decline in delivery fees.
A similar pattern is emerging in the ride-hailing sector, another major source of flexible employment. A risk warning issued by the Shenzhen Municipal Transport Bureau in April 2026 indicated that the local ride-hailing market had become saturated: in April, each vehicle completed only 13.01 trips per day on average, significantly below the industry break-even level of approximately 20 trips
Sources: Daokedao 1, Daokedao 2, Baidu
Campaign Against Online Piracy
China’s National Copyright Administration, Ministry of Industry and Information Technology, Ministry of Public Security, and Cyberspace Administration of China have launched a nationwide campaign against online copyright infringement.
Regulators are focusing on cloud storage services, browsers, search engines, and AI-modified content.
The campaign aims to strengthen protection of copyrights in film and television works, cultural and creative products, and books. Authorities will target activities such as:
- Distribution of pirated content through cloud storage services, browsers, search engines, and TV set-top boxes;
- Facilitating unauthorized copying to attract traffic;
- Disseminating or selling pirated content through livestreaming and traffic-redirection schemes;
- Illegal copying, adaptation, and distribution of works using AI and other emerging technologies, as well as unauthorized modifications, plagiarism, deepfakes, and tools designed to circumvent monitoring systems.
Source: WeChat
Fruit Market Withdraws Exclusive Dealing Requirement
At the end of May, Hai Guang Xing (HGX), the largest tropical fruit market in Eastern China, prohibited its vendors from selling products through a competing market in Chuzhou, a neighboring province.
The restriction applied not only to the businesses themselves but also to their beneficial owners and affiliated individuals, including spouses, children, and parents.
HGX stated that if cooperation with the Chuzhou market was discovered, it would immediately terminate the vendor’s operating agreement and would not refund any fees, including rent and security deposits.
After learning of the restriction, the media outlet The Paper contacted the local Market Regulation Administration. An official indicated that the authority was aware of the matter and had already initiated an investigation.
Several days later, HGX publicly announced that it was withdrawing the restriction and apologized for the misunderstanding, describing it as a case of “bureaucratic confusion.”
Source: WeChat
Safety Inspection of Food Delivery Platforms
China’s State Administration for Market Regulation (SAMR) conducted an inspection of 14 food delivery platforms to identify and address food safety risks. Authorities also carried out spot checks on 875 restaurants operating on these platforms.
The non-compliance rate was 2.3%, suggesting that food delivered through online platforms generally maintains a relatively high level of safety.
However, inspectors found that not all restaurants adequately monitored the validity of employee health certificates. Certain food samples contained excessive levels of colorants, preservatives, sweeteners, and aluminum-containing leavening agents. Excessive residues of pesticides and veterinary drugs were also detected.
SAMR urged local regulators to strengthen oversight of food safety risks in the online food delivery industry and to impose strict penalties for violations.
Source: SAMR
Episodes 7 and 8 of Overseas Antitrust Regulation: Spain and Germany
SAMR has launched an infographic series explaining antitrust laws and competition enforcement systems in major foreign jurisdictions.
The seventh installment focuses on Spain, while the eighth examines Germany. The publications outline key applicable laws, merger filing thresholds, and examples of potentially anti-competitive conduct.
Earlier installments covered the antitrust frameworks of the United States, the European Union, the United Kingdom, South Korea, Japan, and Canada.
[1] As reported, as of February 2026, the three major platforms — Meituan, Taobao Flash Sale, and JD.com — were processing an average of about 110 million orders per day. Assuming that each courier completes 30–40 deliveries per day, fulfilling that volume of orders would require only around 4 million couriers.
