China drafts internet platform pricing rules amid complaints

China has proposed new rules governing the way internet platforms set prices, following years of complaints from merchants and consumers about unfair or misleading practices, according to a recent report by Reuters.

The draft regulations, published on August 23 by the National Development and Reform Commission, would require platforms that sell goods or services to adopt clearer and more standardised pricing methods. 

Operators and merchants would be obliged to agree on and adjust prices through formal mechanisms such as contracts and orders, while also increasing transparency, promptly disclosing fee changes and allowing for greater public oversight, as per the Reuters report.

The commission said the proposals are aimed at encouraging fairness and accountability in digital marketplaces. Merchants have long alleged that major platforms manipulate prices to drive up sales, while consumers have raised concerns over confusing or deceptive pricing structures.

China has previously taken high-profile steps against anti-competitive behaviour in the sector. In 2021, Alibaba was fined a record $2.75 billion for violating antitrust rules.

Despite those measures, large platforms have continued to compete aggressively, particularly in "instant retail" services that promise delivery within half an hour. The draft rules are open for public consultation for one month, according to a Reuters report.