China will implement stringent oversight of digital platforms, as part of a broader effort to ensure fair competition and protect the legitimate rights of both consumers and businesses, said Luo Wen, head of the State Administration for Market Regulation.
Speaking to the press after the opening meeting of the third session of the 14th National People's Congress (NPC) at the Great Hall of the People in Beijing on Wednesday, Luo said that the Chinese ministerial-level agency aims to implemented targeted measures to resolve the difficulties in ensuring a healthier market environment.
"This year, efforts will be made to optimize the regulatory approaches and methods, and vigorously promote the healthy development of the platform economy," he stressed.
"Regarding platform regulations, we will uphold the principles of transparency and equality to foster a mutually beneficial environment for all stakeholders. To address the significant issue of platforms abusing the 'refund-only' policy - causing merchants to lose both goods and payments - we will mandate that platforms clearly define the scope and specific circumstances for rule application, thereby safeguarding the legitimate rights and interests of merchants. Concerning platform fees, we will require that platforms simplify and publicly disclose their fee-based services, optimize pricing mechanisms, ensure merchants' right to information, and help merchants lower operational costs while enhancing efficiency," Luo said.
In response to the rat race competition due to the platforms' practice of automatic price matching and offering rock bottom price, the administration will urge the platforms to regulate their promotional practices and safeguard merchants' rights to independent operation, he added.
"In terms of live-streaming e-commerce, we will enforce platform accountability for content review, intensify targeted inspections of product quality, strengthen regulatory enforcement, and rigorously combat false advertising and misleading promotions. With respect to platform algorithms, market regulatory authorities will collaborate closely with relevant departments to enhance comprehensive governance, promote greater algorithmic transparency, and refine algorithmic rules," he continued.
China to optimize regulations on digital platforms
