China's Supreme People's Court has spotlighted a case in which a company selling devices that let food-delivery couriers automatically grab orders was ordered to pay 3 million yuan (about $422,500) in damages for unfair competition. The ruling, issued by a court in Guangzhou, Guangdong province, has taken effect, according to IThome (IThome).
The case began in 2024 when the operators of a major food-delivery platform and a crowdsourced delivery platform received numerous complaints from couriers about rivals using external devices to snatch orders. An investigation traced the devices to an electronics company that sold them under the name 'point-slider' on two e-commerce storefronts, complete with tutorial videos.
The tutorials showed couriers how to connect the device to the platform's app, enabling rapid order refreshing and automatic order grabbing without touching the phone screen. The device's response time far exceeded manual operation, giving users an unfair advantage in securing high-value orders. The devices generated cumulative sales of several million yuan, the court found.
Court finds 'substantial obstruction' of platform operations
The Guangzhou Huangpu District People's Court ruled that while the devices did not directly intercept or modify platform data, they circumvented platform rules through technical means, disrupting the platform's dispatch algorithm and increasing system load. This constituted 'substantial obstruction' of the platform's normal operations, the court said.
The court also noted that the devices undermined fair competition among couriers. Those using them could prioritize lucrative orders, reducing opportunities for compliant couriers and squeezing their earnings. The ruling further highlighted harm to consumers and merchants: order cancellations, delivery delays, and inefficient routes extended waiting times for consumers, while merchants faced higher fulfillment risks and negative reviews.
The court concluded that the electronics company's actions hindered the normal operation of network services provided by other businesses, ordering it to pay 3 million yuan in compensation. The judgment has taken legal effect.
Broader crackdown on digital unfair competition
The case is among nine typical unfair competition cases released by the Supreme People's Court, covering emerging areas such as AI and livestream e-commerce. The court also issued guidance on rules for cases involving 'AI face-swapping and voice-cloning,' and clarified liability rules for autonomous vehicles, while regulating false advertising.
For the tech industry, the ruling signals that using hardware to game algorithms is as illegal as software-based cheating. It reinforces that platforms' operational rules and dispatch algorithms are protected under unfair competition law, even when third-party devices do not directly hack into systems. This could deter makers of similar 'physical plug-ins' across ride-hailing, food delivery, and other gig-economy platforms in China.
