China’s government has expanded its antitrust crackdown beyond Jack Ma’s technology empire, launching an investigation into suspected monopolistic practices by food-delivery behemoth Meituan.
The State Administration for Market Regulation is looking into alleged abuses including forced exclusivity arrangements known as "pick one of two,” employing the same language in a probe into Ma’s Alibaba Group Holding Ltd. that ended with a $2.8 billion fine. China’s third largest internet company recouped early losses to rise as much as 3.1% Tuesday after Nomura analysts estimated Meituan may have to fork over just 4.6 billion yuan ($709 million) based on Alibaba’s punishment.
The investigation into Meituan extends Beijing’s crackdown beyond Ma’s Alibaba Group Holding Ltd. and Ant Group Co., and threatens to chill the ambitions of founder Wang Xing, one of China’s most aggressive entrepreneurs. The government has become increasingly concerned over the growing influence of titans like Alibaba, Tencent Holdings Ltd. and Meituan over every aspect of Chinese life as well as the vast amounts of data they’ve amassed through providing services like online shopping, chatting and ride-hailing.