China hands Alibaba-backed Nice Tuan new 1.5 million yuan fine

BEIJING: The Chinese market regulator has asked Alibaba-backed Nice Tuan to suspend its operations in Jiangsu province for three days and fined it 1.5 million yuan ($235,302) for failing to take action over product dumping practices and pricing fraud.

The State Administration for Market Regulation (SAMR) said in a statement on its website that the community group buying service provider had failed to correct wrongdoings in some areas since it was fined by the regulator in March, despite company claims of active rectification.

For example, Nice Tuan offered a type of pear at 0.99 yuan per 250 grams, despite its cost being 3.89 yuan, according to SAMR.

Such behaviour “undermines the legitimate rights and interests of small and medium-sized enterprises” and other grocers, it said.

Article continues after this advertisement

Nice Tuan did not immediately respond to a request for comment.

In March, China fined five community group-buying platforms, including Nice Tuan, and others backed by the likes of Meituan, Pinduoduo (NASDAQ:PDD) and Tencent Holdings (OTC:TCEHY), citing “improper pricing behaviour”.

China has vowed to strengthen oversight of its big tech firms, which rank among the world’s largest and most valuable, citing concerns that they have built market power that stifles competition, misused consumer data and violated consumer rights.

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -

Must Read

Tech sector continues to thrive, prosper: WIPO report

Despite the economic devastation wrought by Covid-19, the new technology sector continued to thrive and prosper last year, the UN’s World Intellectual Property Organisation’s...