Pandaily's Digest #20211008
Meituan fined $533.8 million for monopolistic behavior, Faraday Future questioned by a short-seller, CST Group sells 32.18 million Evergrande Auto shares, photos of Xpeng’s aerocars exposed, and more.
Meituan Receives $533.8 Million Fine for Monopolistic Behavior in Online Food Delivery Service Market
China’s State Administration for Market Regulation on October 8 reached a decision to penalize domestic food delivery giant Meituan. In accordance with the country’s Anti-Monopoly Law, the firm has been ordered to stop its illegal activities and give back the “exclusive cooperation deposit” from all merchants, worth 1.289 billion yuan ($199.9 million) in full. The regulatory authorities also imposed a fine worth 3% of Meituan’s domestic sales – which totaled 114.748 billion yuan in 2020 – accounting for 3.442 billion yuan ($533.8 million). Authorities then called for the platform to strengthen internal rectification.
Short-Selling Agency Releases 28-Page Report Questioning FF’s Carmaking
J Capital Research Limited, an American short-selling agency, on October 7 released a report on new energy vehicle company Faraday Future (FF). Through on-site investigation, analysis of FF’s financial report and technical capabilities, and research of capital operations after the firm’s listing, J Capital Research bluntly holds a negative attitude in the report, claiming it doesn’t think “FF could sell even one car.”
CST Group Disposes of 32.18 Million Evergrande Auto Shares
CST Group announced on October 5 at the Hong Kong Stock Exchange that it has sold a total of 32.18 million shares in Evergrande Auto, with about HK$125 million ($16.05 million) through the open market at an average price of about HK$3.89 per share.
China’s Community Group-Buying Players Are Facing a Reshuffle, Signaling the End of the Fast-Growth, Cash-Burning Bubble Blown by the Country’s Big Tech
Many Chinese Internet companies, including Didi, Meituan and JD.com, have attempted to enter the community group-buying sector after pandemic-induced lockdowns posed challenges for residents in the country’s lower-tier cities to access life essentials in early 2020, generating enthusiasm for online grocery shopping across the broader population. However, with several top players withdrawing from the competition, the bloated market is entering a new phase of consolidation.
China’s Mainstream Video Platforms Cancel Option to Fast Track Episodes
Three mainstream long-video platforms in China, iQiyi, Tencent Video and Youku, announced on Monday the cancellation of their option to fast track dramas.
WeChat Pay and UnionPay Mobile QuickPass Promote Payment Cooperation
Tencent announced on Thursday that in order to promote the development of the payment service market, WeChat Pay and UnionPay Mobile QuickPass are promoting cooperation between their payment platforms and are now integrating each other’s payment methods into one another another.
US Launches $1.9 Billion Project to Replace Domestic Huawei and ZTE Equipment
The United States Federal Communications Commission (FCC) recently issued a statement announcing that it will launch a reimbursement program worth $1.9 billion to help most rural telecom operators across the country dismantle the installed network equipment produced by Chinese companies Huawei and ZTE. The committee claims the devices could pose a threat to U.S. national security.
Field Test Pictures of Xpeng Motors’ Aerocars Exposed While Range of Flying Vehicles Unveiled at Airshow China
Photographs of a group of manned aircraft have attracted attention in China recently. The pictures show two pilots flying in the air in an aerocar, as iFeng Tech reported on Thursday. Xpeng Motors responded: “This is not only a flying car but our deployment for future travel.”
Chinese Companies Sue Amazon Over Bans for Paid Reviews
A recently published court document shows that a collection of Chinese companies have filed a class action lawsuit against Amazon in the United States District Court for the Northern District of California on September 13, accusing the platform of illegally banning and withholding funds on the grounds of paid reviews, and demanding that they “[take] back the funds illegally and improperly detained by Amazon.” The e-commerce platform has yet to comment on the matter.
Sources Say iPhone 13 Models Have Increased in Price as Suppliers Suffer Power Shortages and Production Stoppages
Domestic media outlet Kuaikeji reported that the recent large-scale power shortage in many regions across China has led to power rationing in some areas of the country. Although residents’ electricity consumption has not been affected, some industrial enterprises and manufacturers have stopped working due to the recent power rationing, including many key suppliers of Apple.