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JD.com Struggles to Gain Ground in China’s Instant-Delivery Market

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Chinese e-commerce giant JD.com (9618.HK) is ramping up efforts to expand its instant-delivery business through JD Takeaway, launched in February, aiming to diversify revenue beyond its core retail operations. Despite significant investments and improvements in user engagement—quarterly active customer growth and shopping frequency rose over 40%—the company faces a steep challenge breaking into a market dominated by established players.

Daily active users of JD’s delivery service have declined steadily since mid-June, falling more than 13% week-on-week by July 27, according to M Science data, signaling potential market share loss. Analyst Vinci Zhang noted that Meituan (3690.HK) and Alibaba’s (9988.HK) Ele.me service possess strong expertise in food delivery, making JD’s expansion particularly difficult.

JD’s investments in food delivery have also compressed profitability, with the adjusted operating margin dropping to 0.3% in the June quarter from 4% a year ago. By comparison, Meituan recently recorded an all-time high of 120 million daily orders across food and retail, controlling nearly 70% of the delivery market, while Alibaba’s Taobao instant commerce combined with Ele.me hit 80 million daily orders, with 200 million daily active users early in July.

The market is seeing fierce competition, with the three companies collectively pledging nearly 200 billion yuan ($27.87 billion) in subsidies, fueling a price war in instant retail that has drawn regulatory attention. JD.com CEO Sandy Xu emphasized the company’s focus on platform improvements to attract more users, merchants, and delivery riders, even as competitors prepare to report their quarterly results.

Judge Rejects Apple’s Bid to Dismiss U.S. Antitrust Lawsuit over iPhone Market Power

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Apple must face a U.S. Department of Justice (DOJ) lawsuit accusing it of unlawfully maintaining monopoly power in the U.S. smartphone market, a federal judge ruled on Monday. The decision paves the way for a potentially years-long legal battle over Apple’s business practices.

U.S. District Judge Julien Neals in Newark, New Jersey, denied Apple’s motion to dismiss the case, which centers on how the company allegedly uses technical and contractual restrictions to limit competition. The DOJ, joined by several states and Washington, D.C., argues that Apple has implemented policies that discourage users from switching to rival devices and suppress third-party innovation in areas like apps, smartwatches, messaging, and digital wallets.

An Apple spokesperson responded by saying the company believes the lawsuit is flawed in both fact and law, and vowed to vigorously defend itself in court. The DOJ declined to comment on the ruling.

Apple’s iPhone, the world’s most popular smartphone, generated $201 billion in sales in 2024. The tech giant introduced a new budget iPhone model in February, pricing it $170 higher than the previous version despite added features.

The antitrust case, filed in March 2024, argues that Apple’s practices—including restricting app developer access, imposing high fees, and limiting device interoperability—create unlawful barriers to competition. Apple counters that these policies are necessary for security and innovation, and that being forced to share proprietary technology could undermine its product ecosystem.

This case joins a broader wave of U.S. antitrust actions against major tech companies, spanning both the Biden and Trump administrations. Meta Platforms and Amazon are also facing monopoly lawsuits, while Google-owner Alphabet is battling two separate antitrust cases.

Indonesia Antitrust Agency Grants Conditional Approval for TikTok’s Tokopedia Acquisition

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Indonesia’s antitrust authority, the KPPU, has given a conditional green light to TikTok’s $840 million acquisition of a 75.01% stake in Tokopedia, the country’s largest e-commerce platform. The deal, completed in January 2024, was previously scrutinized for potential monopoly risks.

The KPPU’s approval comes after TikTok and Tokopedia agreed to meet several conditions designed to safeguard fair competition. These include maintaining open access to payment and logistics services and prohibiting predatory pricing practices that could harm market fairness.

During its probe, the agency had flagged concerns over increased market concentration and the possibility of post-acquisition price hikes due to TikTok’s dominant position. The conditions aim to mitigate these risks and promote a balanced digital marketplace.

TikTok expressed respect for the KPPU’s decision and reiterated its commitment to fair competition principles. The KPPU will continue monitoring compliance with the conditions until June 17, 2027, retaining authority to impose sanctions if violations occur.