# Platform Regulation

China’s $500 Million Reality Check: The 'Ghost' Kitchens Haunted by a Record Regulatory Fine

Chinese regulators have imposed a record 3.6 billion yuan fine on seven major food delivery platforms to crack down on a massive network of 'ghost shops' and fraudulent order-flipping schemes. The investigation exposed a shadow industry where orders are auctioned to unlicensed workshops, severely compromising food safety and market competition.