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    Home > Biochemistry News > Biotechnology News > Shanghai food delivery platform Shipaishi fined RMB 1,168,600 for implementing "two-choice-one" monopoly behavior

    Shanghai food delivery platform Shipaishi fined RMB 1,168,600 for implementing "two-choice-one" monopoly behavior

    • Last Update: 2021-04-16
    • Source: Internet
    • Author: User
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    According to information from the State Administration of Market Supervision, according to reports, in June 2019, the Shanghai Municipal Administration of Market Supervision conducted investigations against Shanghai Shipaishi Business Development Co.
    , Ltd.
    (hereinafter referred to as "Shipaishi") for allegedly abusing market dominance in accordance with the Anti-Monopoly Law.
    survey.
    In August 2019, the Shanghai Municipal Market Supervision Bureau decided in accordance with the law to formally file an investigation on Shipaishi.
    Taking into account factors such as the nature, extent and duration of the illegal acts of Food Paes, in accordance with Article 47 and Article 49 of the Anti-Monopoly Law, Article 27 of the Administrative Penalty Law, 2020 On December 25, the Shanghai Municipal Market Supervision Bureau made an administrative penalty decision in accordance with the law, imposing a fine of 3% of its 2018 sales on Shipai , a total of RMB 1,168,600 .

    Total RMB 1,168,600

    After investigation, Shipaishi is an Internet catering delivery platform, which mainly provides users with English-language catering delivery service resource information and catering delivery services.
    The business model is to connect to the Internet through web pages, mobile APP "Sherpa's" (Sherpa's) and other Internet media.
    Users and offline catering companies, and provide services.
    From January 2017 to October 2019, Food Paes used its dominant position in the service market of the online catering delivery platform that provides English services in Shanghai, and asked the merchants of the cooperative restaurants on the platform to "choose one of the two" requirements.
    Merchants of cooperative restaurants have signed a cooperation agreement that includes "exclusive meal delivery rights clauses", and through the formulation and implementation of "exclusive meal delivery rights plans" and other forms, the cooperative restaurant merchants are required to immediately stop cooperating with other competitor platforms, otherwise they will start from the Shipaishi platform.
    Remove the merchant.



    The investigation showed that by implementing the above-mentioned “choose one of two” behaviors, Shipai has locked a large number of cooperative restaurant merchant resources in the relevant market, severely weakened the competitiveness of competitors, harmed the interests of merchants and consumers on the platform, and has obvious exclusions.


    , Restricting the effect of competition, and without justification, constitutes an abuse of market dominance that is prohibited by Article 17 (1) (4) of the Anti-Monopoly Law, which is an abuse of market dominance that “without a justified reason, the counterparty of the transaction can only be traded with” behavior.




    Anti-monopoly has made another hit in the Internet field.


    The English food delivery platform "Shi Pai Shi" was fined RMB 1,168,600 by Shanghai Municipal Market Supervision for implementing a "choose one out of two" monopolistic behavior on the delivery platform.




    On April 12, the official WeChat account of the Shanghai Municipal Administration of Market Supervision issued the "Administrative Penalty Decision", stating that since June 2019, it was suspected of abusing a dominant market position against Shanghai Shipaishi Business Development Co.


    , Ltd.
    ("Shipaishi").




    Shipaishi's online catering delivery platform service brand was founded in 2001 and was acquired by Yum China Holdings Co.


    , Ltd.
    in 2017.




    In Shanghai, in addition to Shi Pai Shi, there are three other online catering delivery platforms that provide English services-MEALBAY, founded in Shanghai in 2006, Jinshi Delivery, which entered the Shanghai market in 2015, and officially opened in Shanghai in 2016 EKD for online operation.


    In contrast, Shipaisi entered the market earlier and built a team of delivery personnel.
    Its delivery and management systems are more mature.




    From the data point of view, Shi Pai Shi is even more dominant.


    In 2017, the average daily order market share of Foodpas has reached 93.
    85%, the average monthly online merchant market share has reached 55.


    Shipaishi has more than half of the market share in Shanghai's English online food delivery platform, which means it has a dominant market position.



    From the survey results, the rapid growth of Shipaishi is not only due to its early entry into the market and the maturity of its own business model, but also a series of market monopoly behaviors implemented by it.



    According to the investigation, from January 2017 to October 2019, Food Paes implemented an abuse of market dominance without justified reasons for restricting transactions.



    During the period, Food Paes signed a cooperation agreement with all cooperative restaurant merchants that contained "exclusive food delivery rights clauses".


    Food Paes used WeChat communication and production of weekly reports to require cooperative restaurant merchants that did not implement the "exclusive food delivery rights clauses" to compete The opponent's platform was removed.
    At the same time, relevant staff members prepare work reports every week and report them to the commercial director to continue to follow up and update whether the relevant merchants have been removed from the competitors' platforms.




    From September 2017 to March 2018, Food Pais formulated the "Exclusive Meal Delivery Right Plan" and promoted its implementation.


    According to statistics, since September 2017, Shipai has implemented plans for 16 restaurants on the Jinshi Delivery platform, 49 restaurants on the EKD platform, and 7 restaurants on the MEALBAY platform.
    As of November 2017, 60% of the above restaurants have been removed from other online catering delivery platforms that provide English-language services.
    As of March 2018, only three of the restaurants cooperating with Shipaishi are still on the shelves of other competitors' platforms, and the plan is basically completed.




    According to statistics, since 2017, the daily order volume, monthly average number of online restaurants and sales of Shipai’s competitors have continued to decline sharply.
    Among them, MEALBAY stopped its online catering delivery service in December 2017 because it was unable to maintain it.
    In sharp contrast, during the same period, although the average daily order volume of food paces has also decreased slightly, the monthly average number of online restaurant merchants and sales have increased significantly.



    The Shanghai Municipal Administration of Market Supervision determined that Shipaishi took advantage of its dominant position in the service market of the online catering delivery platform that provides English services in Shanghai, implemented restricted transactions, locked in a large number of cooperative restaurant merchant resources in the relevant market, and seriously weakened It has violated the "Anti-Monopoly Law" and constituted an abuse of market dominance to restrict trading activities, which resulted in the effect of eliminating or restricting competition in the relevant market without a legitimate reason.



    However, Shipai has ceased illegal activities since November 2019.
    In view of the difficulty in determining the fair price of online catering delivery service delivery costs and the fair proportion of commissions in a fully competitive state, the Shanghai Municipal Market Supervision and Administration Bureau of The rebate of 3% of the sales in 2018 was RMB 1,168,600.
    In 2018, the annual sales of Shipai was RMB 38,954,800.



    In recent days, the regulatory authorities are making heavy blows against the Internet industry in the "hardest-hit areas" of anti-monopoly.
    On the morning of April 10th, the State Administration for Market Regulation issued an administrative penalty in response to Ali’s “choose one” monopoly behavior in accordance with the law, ordering Alibaba Group to stop the illegal activities and imposing 4% of the 2019 domestic sales of 455.
    712 billion yuan.
    The total fines amounted to 18.
    228 billion yuan, which is the highest amount of fines since the anti-monopoly law came into effect in 2008.



    The food delivery field has also repeatedly rushed into the hot search on Weibo because of the topic of "choose one of two".
    The competition between Meituan and Ele.
    me oligarchs has caused public concern several times.
    This time, the punishment for the regional English food delivery platform Shipai may be It's just the beginning.
    At present, Meituan’s share price has fallen for three consecutive trading days, and it fell nearly 8% in intraday trading on April 13.

    Source: Titanium Media, People's Daily Online

    Note: All pictures in the article are reprinted on the Internet, and infringement will be deleted!

    Note: All pictures in the article are reprinted on the Internet, and infringement will be deleted!

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