Seven people, including a high-ranking Internet company administrator, were arrested by Shanghai police for alleged bribery totaling over 40 million yuan (US$5.6 million).
The police claimed the administrator surnamed Han used his position to help suppliers secure contracts in exchange for bribes.
Several Chinese media outlets, including Southern Metropolis Daily, identified the administrator as Han Liu, who is a former logistics director and vice president at Ele.me, an Alibaba-owned food delivery business, making him the key suspect.
Ele.me announced in June that they had reported Han to the authorities for work-related offenses.
Shanghai authorities claimed the Internet company flagged abnormalities during an internal audit in May and reported the matter to authorities.
Police said Han and two friends misused their power since July 2023. Suppliers allegedly gave them cash and gifts for helping them achieve high-profit delivery zones in numerous locations. Han sought a share of supplier profits.
Investigators found that the trio were bribed on more than 30 occasions. They hid the money and gifts in rental properties to avoid detection.
Some vendors bribed the suspects to remain on the platform, while others paid them for increased business opportunities. Police claimed that the suspects provided these suppliers with undue benefits, which violated corporate rules and harmed the competitive market.
Shanghai police and their counterpart in Zhejiang Province launched a coordinated operation in June.
All seven are in criminal detention. They are being investigated for bribery involving non-government employees.