The fierce battle among China’s food delivery giants has moved beyond aggressive discounting, with market leader Meituan accused of paying merchants to provide negative information about a major rival, according to an investigative report by state-owned newspaper Shanghai Securities News.

The controversy dates back to October 2025, when Beijing’s market regulator launched a campaign to curb unhealthy competition and price wars in the food delivery sector. The newspaper reported that Meituan paid merchants to report alleged irregularities by Alibaba Group Holding’s Taobao Shangou, while engaging in similar practices itself.

In one case, a dumpling restaurant received 5,000 yuan (US$738) for disclosing that Taobao Shangou had reduced the listed price of one of its dishes without the restaurant’s consent, according to the report, which cited the restaurant’s manager.

The revelations come as competition in China’s food delivery market intensifies and regulators step up scrutiny of industry practices. Just days earlier, police uncovered a coordinated smear campaign targeting Taobao Shangou and another major player, JD.com.

According to Shanghai Securities News, Meituan reported the dumpling case to market regulators, who in March penalised Alibaba after determining that the platform had gained an unfair competitive advantage by listing the dumplings at 1.25 yuan, far below the restaurant’s normal price of 18 yuan per serving.

Meituan did not immediately respond to a request for comment on Monday.

In the March crackdown, the regulator criticised a number of online platforms, including Alibaba’s Taobao Shangou and Amap, JD.com, and Trip.com’s Ctrip and Qunar, although it did not publicly name Meituan. The company nevertheless sent representatives to attend the regulatory meeting.