China has unveiled draft regulations aimed at establishing stricter pricing standards for major internet platforms, following a surge of complaints from both merchants and consumers. The National Development and Reform Commission (NDRC) announced the proposed rules on Saturday, opening them for public comment. The initiative is designed to promote greater price transparency and fairness for platforms that sell goods or services, addressing long-standing concerns over anti-competitive behavior.
According to the draft rules, all pricing agreements and changes between platforms and merchants must be conducted through standardized, formalized methods such as contracts and orders. The regulations explicitly require that platform operators and their merchants adhere to clear pricing guidelines, enhance the transparency of their pricing rules, and promptly disclose any changes to their fee structures. This move is intended to make pricing practices more open to public oversight.
The push for new regulations comes after years of allegations from merchants who accuse dominant platforms of unfairly manipulating prices to increase their own sales, often at the expense of smaller businesses. Consumers have also lodged numerous complaints about misleading and opaque pricing strategies. This regulatory action is part of a broader crackdown on the tech sector, which notably included a record $2.75 billion fine levied against Alibaba for anti-monopoly violations in 2021.
Despite the increased regulatory scrutiny, major e-commerce players have recently downplayed the risks as they engage in intense price wars within the fast-growing “instant retail” sector, where delivery times can be as short as thirty minutes. The introduction of these new draft rules signals regulators’ ongoing commitment to curbing the market power of large platforms and ensuring a more equitable digital marketplace.
