China market regulator says it will tighten oversight of sharing economy

FILE PHOTO: A person wearing a mask rides a bicycle of bike-sharing service on a street, almost a year after the start of the coronavirus disease (COVID-19) outbreak, in Wuhan, Hubei province, China December 17, 2020. REUTERS/Aly Song TPX IMAGES OF THE DAY

BEIJING (Reuters) – China’s State Administration of Market Regulation (SAMR) said on Monday it would further regulate the sharing economy sector.

SAMR said on its website that price hikes in the system built around the sharing of resources were effectively contained due to its oversight.

The regulator also said it is investigating food delivery giant Meituan’s acquisition of bike sharing company Mobike in 2018.

Separately, Meituan on Monday warned in a filing that it may be required to pay “a significant amount” of antitrust fines and posted a third consecutive quarterly loss as it continued to invest in expanding its various businesses.

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