Market watchdog delivers heavy fine against Sherpa's
Sherpa's, an English-language food delivery service provider based in Shanghai, has been fined 1.17 million yuan for violating China's anti-monopoly law, the city's market watchdog said today.
The company was found to have abused its dominant market position, signing agreements containing "exclusive delivery right terms" with all catering business partners and requiring them to stop cooperating with its competitors or face removal from the platform between January of 2017 and October of 2019, the Shanghai Administration for Market Regulation said based on its investigation.
Sherpa's actions secured a large number of eatery and catering business resources in the market, seriously hindering competition and infringing on the rights and interests of consumers and other businesses, the administration said.
The fine imposed was based on three percent of the company's turnover in 2018.