China issues new rules to regulate internet platform pricing
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China's President Xi Jinping shown on a screen in front of logos of China's leading Internet companies Tencent, Baidu, Alibaba Group during the fourth World Internet Conference in Wuzhen, Zhejiang province, China, December 4, 2017. REUTERS/Aly Song
Dec 20 (Reuters) - China's cyberspace authority said on Saturday it would introduce new regulations to regulate pricing on internet platforms effective from April 10.
The rules, among other things, reiterate that platform owners must not use means like higher fees or search ranking blacklisting to force businesses on the platform to lower prices.
Authorities in China typically take a sustained and firm-handed approach toward practices they deem unfavourable to healthy and rational market development.
However, so far, China's largest e-commerce platforms show no signs of halting an "instant retail" price war. While consumers may enjoy the low prices, merchants complain on social media that ongoing price wars all but eliminate profit margins and restaurateurs bemoan a fall in profitable in-person custom.
(Lewis Jackson and Ella Cao in Beijing; Editing by Muralikumar Anantharaman)
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