(Yicai Global) Oct. 11 -- Meituan’s shares soared after China’s market regulator fined the food delivery giant about CNY3.4 billion (USD528 million) for monopolistic conduct, bringing to a close a five-month investigation into the company.

After gaining by as much as 9.6 percent midday, Meituan’s shares [HKG: 3690] finished 8.4 percent higher at HKG277.40 (USD35.65) each. The stock is still down almost 40 percent from an all-time closing high of HKD451.40 on Feb. 17.

The State Administration for Market Regulation announced the fine, which was equal to 3 percent of Meituan’s domestic revenue last year, on Oct. 8. The watchdog said Meituan had breached anti-monopoly regulations by abusing its dominant position in China’s online food delivery market since 2018.

“We accept the punishment and will carry out self-examination and rectification to implement the regulator’s requirements,” the Beijing-based company said later the same day.

The SAMR said Meituan eliminated and restricted competition as it persuaded merchants to sign exclusive cooperation deals by imposing differentiated rates and intentionally delaying the availability of those vendors that dared to not sign such agreements. The firm also ensured the exclusivity of the business partnership through high cooperation deposits, collection of data, and use of algorithms.

The SAMR ordered Meituan to stop such practices and also fully refund CNY1.3 billion worth of exclusive cooperation deposits. It further instructed the company to rectify the platform's commission charging mechanism and algorithms, and safeguard the rights and interests of small and medium-sized vendors on the platform, as well as those of delivery riders.

With a clear analysis of Meituan's conduct, the punishment fully embodies the characteristics and ideals of anti-monopoly supervision and law enforcement in the digital era, said Wang Jian, a professor at Zhejiang Sci-tech University's School of Law and Political Science.

China's sustained antitrust regulation of the platform economy aims to promote sound interactive development between internet platforms and small and mid-sized businesses through demonstration cases and warnings, so as to better protect the interests of consumers, noted Wang Xianlin, a professor at Shanghai Jiao Tong University.

Meituan had revenue of CNY43.8 billion (USD6.8 million) in the second quarter of this year, up 77 percent from a year earlier, with 640 million transacting users and 7.7 million active merchants.

Editors: Zhang Yushuo, Futura Costaglione