The draft is open to public feedback for one month.
Chinese authorities on Saturday began to solicit public opinions on a draft regulation of price-related acts for internet platform companies to promote the healthy development of the sector.
The draft regulation, jointly issued by the National Development and Reform Commission (NDRC), the State Administration for Market Regulation and the Cyberspace Administration of China, focuses on guiding the operators of the platform economy to set prices independently in accordance with the law, clarifying requirements for price labeling and regulating their price competition behaviors.
The move aims to establish a transparent and predictable price-related regulation mechanism for the sector, said an official from the NDRC, China's top economic planner.
The operators of the platform economy are required to clearly indicate the prices or charging standards for products and services on their websites and related channels, according to the draft regulation, which noted that no fees beyond the labeled prices should be collected.
Actions deemed unacceptable for online platforms include both explicit and implicit coercion of suppliers to lower prices, offer discounts, or set minimum prices. The draft also requires platforms and suppliers to publicly disclose pricing rules and promotional mechanisms, including discounts, subsidies, differentiated pricing, dynamic pricing, and ranking based on bidding, among others. The draft specifically addresses the issue of predatory pricing: platforms and their participants are prohibited from selling goods or services below cost with the intent to drive out competitors or monopolize the market.
The document also clarifies that if a platform’s business model is based on the long-term provision of free services to users, promotes innovation, and enhances the long-term welfare of both sellers and consumers, such practices will not be considered a violation of the Pricing Law.
The draft regulation was formulated in accordance with the country's relevant laws and regulations and is expected to help maintain a fair market environment and protect the legitimate rights and interests of platform economy operators and consumers, the official said.
The draft is open to public feedback for one month, according to the NDRC.
