Alibaba Group (NYSE:BABA), Meituan (OTC:MPNGY), and JD.com (NASDAQ:JD) pledged on Friday to end aggressive price-based competition that has squeezed margins and drawn regulatory scrutiny.

The companies issued coordinated statements promising to promote fair business practices in the $80 billion-plus food delivery sector, Bloomberg reported on Friday.

After the State Administration for Market Regulation summoned them in July, the firms committed to curbing “disorderly competition.”

Also Read: Meituan Cries ‘Irrational!’ As Alibaba Escalates Delivery Battle

Alibaba’s Ele.me vowed to protect merchants’ margins and avoid irrational promotions, while Meituan said it would no longer force businesses to join subsidy programs. JD.com also said it would resist “malicious” subsidies to prevent market distortions.

The price war intensified recently as JD.com ramped up promotions, prompting Meituan and Ele.me to counter with steep discounts such as $1 meals and free bubble tea. All three companies competed for daily takeout orders with billion-yuan subsidy campaigns.

Analysts, including Xiaoyan Wang of 86Research, told Bloomberg that the rivalry will persist in a more controlled form and credited it with boosting the delivery market.

In July, China’s market regulator warned Alibaba, JD.com, and Meituan to rein in aggressive discounting after months of escalating e-commerce price wars.

The State Administration for Market Regulation urged Alibaba’s Ele.me and rivals to adopt rational competition, citing risks to profit margins and regulatory compliance.

Alibaba has already lost $100 billion in market value since March, with its stock down 27%, nearly double the sector’s average drop. Goldman Sachs estimates its food delivery unit could post losses of 41 billion yuan by mid-2026.

Price Actions: BABA shares are trading higher by 0.97% to $118.21 premarket at last check Monday. JD is up 1.65%.

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