Why Is Everyone Talking About Meituan Stock?
China's antitrust regulators recently fined Meituan (OTC: MPNG.Y), one of the country's largest on-demand delivery companies, 3.44 billion yuan ($533 million) -- or 3% of its domestic revenue from 2020 -- following a closely watched probe that started in April.
The investigation mainly focused on Meituan's use of exclusive deals to prevent its merchants from using other delivery services. The company will need to end those exclusive partnerships, return 1.29 billion yuan ($200 million) in merchant deposit fees related to those deals, improve safety standards for its delivery workers, and submit compliance reports over the next three years.
Image source: Meituan.
Source Fool.com
