China's antitrust regulator is preparing to SLOT168 impose a fine of about US$1 billion on Meituan for allegedly abusing its dominant market position, the Wall Street Journal reported on Friday, citing people familiar with the matter.
Meituan did not immediately respond to a request for comment.
China in recent months has rolled out sweeping rules to crack down on the tech and private tutoring sectors.
The State Administration of Market Regulation (SAMR) launched an antitrust probe into Meituan in April, focussing on a practice whereby a company forces vendors to use its platform exclusively.
The SAMR in April imposed a record US$2.75 billion fine on e-commerce giant Alibaba over the same practice.
Meituan, which competes with Alibaba-backed Ele.me among others, held an estimated 68.2per cent share of China's food delivery market in the second quarter of 2020, according to Trustdata. Its businesses also include bike sharing, community group buying and restaurant reviews.