Meituan CEO transfers shares worth $ 2.8 billion to his foundation in anti-monopoly review
Photo of Meituan: CFP
Meituan CEO Wang Xing recently transferred 57 million of his own shares to his foundation, worth nearly 17.9 billion yuan ($ 2.8 billion), as part of a crackdown anti-monopoly against Internet platform companies by the Chinese market regulator.
According to reports, Wang signed the share transfer plan on Thursday. At this point, he would convert 10% of his personal Class A shares into Class B shares, which would then be added to the Wang Xing Foundation dedicated to promoting public welfare responsibilities such as education and research.
The move from Meituan, China’s largest online food delivery platform, came after the company was questioned for alleged monopoly practices by the State Administration for Market Regulation in April.
Netizens commented on Sina Weibo that Wang avoids taxes, while some say that as long as he truly engages in charity, the donation is good. However, the reviews mainly complain about unreasonable and rising prices on Meituan and the treatment of delivery people.
“The take-out industry has become a state and almost everyone works for Meituan. The most obvious example is that during the COVID-19 outbreak, Meituan took advantage of its dominant position in the market, increasing constantly the commissions so that small businesses could barely make any money, “a market observer by the name of Wang told the Global Times on Sunday.
Meituan’s CEO responded to the anti-monopoly investigation on May 28 during the Q1 earnings call.
“Anti-monopoly surveillance will have a positive impact on the entire Internet industry, and Meituan has a special team to cooperate with the work of regulators. The anti-monopoly investigation will not have a large negative impact on Meituan’s take-out business, “Wang said. Xing.
Regarding the passengers on the platform, the CEO said that Meituan will actively cooperate with the government to strengthen the social security of platform passengers and part-time passengers, including commercial insurance and accident insurance.