China Hits Seven E-Commerce Giants with USD526M Fine

(MENAFN) China has levied fines totaling $526 million against seven of its most prominent e-commerce platforms following violations linked to so-called "ghost shop" operations and food safety breaches, state media reported Friday.

The penalties, equivalent to 3.597 billion yuan, were handed down by the State Administration for Market Regulation, which simultaneously moved to seize what authorities classified as illegally obtained gains from the implicated companies.

According to media, the seven firms sanctioned are 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 known as Ele.me and now operating as Taobao Flash Purchase — Beijing Douyin Technology Co (Douyin), Zhejiang Taobao Network Co (Taobao), and Zhejiang Tmall Network Co (Tmall).

Regulators cited the platforms' involvement in "ghost delivery" schemes alongside a range of food safety infractions. All seven companies were directed to immediately delist any ghost shops that had bypassed mandatory regulatory review processes and to sever all operational ties with order-transfer platforms connected to such outlets.

As an additional punitive measure, authorities have suspended the registration of new food vendor listings — with a particular focus on categories deemed susceptible to abuse, including dessert vendors and takeaway services — for periods ranging from three to nine months.

MENAFN19042026000045017169ID1111001114