China’s top market regulator has imposed fines totaling 3.597 billion yuan, equivalent to approximately $450 million, on seven major food delivery and e-commerce platforms for allowing unlicensed restaurants and food vendors to operate on their services.
The penalty, announced on April 17, 2026, targets PDD Holdings, Meituan, JD.com, Ele.me, Douyin (owned by ByteDance), Taobao, and Tmall.com—all subsidiaries or platforms under Alibaba Group—for violating food safety regulations by failing to verify the credentials of so-called “ghost kitchens” operating through their delivery networks.
According to the regulator, these platforms did not ensure that the restaurants listed on their apps held the necessary permits, enabling unlicensed food preparation and delivery to continue despite known risks to public health. The violation stems from an amendment to China’s Food Safety Law enacted in 2015, which strengthened oversight of third-party food delivery services.
The combined penalty marks one of the largest ever levied against e-commerce and delivery platforms in China for food safety breaches. Regulators emphasized that while the unlicensed vendors can still technically operate on the platforms, the lack of verification by the companies constitutes a direct failure in their regulatory responsibilities.
The action underscores Beijing’s intensified scrutiny of digital marketplaces, particularly in sectors where supply chain opacity poses challenges to consumer protection. Authorities have signaled that further enforcement may follow as part of broader efforts to standardize food safety practices across the rapidly growing online food delivery market.
