China will implement new regulations starting April 10 to govern pricing practices on online platforms. The rules prohibit methods such as charging higher fees or imposing search penalties to pressure sellers into lowering prices. Despite this, major e-commerce companies are continuing their price wars, which adversely affect merchants while benefiting consumers.
The new regulations, announced by China’s cyberspace authority, will ensure that platform owners cannot use tactics like increased fees or search ranking blacklisting to compel businesses to reduce prices. Chinese authorities typically maintain a strict approach against practices they consider detrimental to healthy market development.
However, the largest e-commerce platforms in China have not ceased their aggressive pricing strategies. While consumers are enjoying lower prices, merchants have voiced their frustrations on social media, stating that these ongoing price wars severely diminish their profit margins, and restaurant owners are particularly concerned about a decline in in-person customer profits.
—
