China Bans E-commerce Platforms From Forcing Lowest Prices or Abusing Algorithms (scmp.com)
(Tuesday December 23, 2025 @11:41AM (msmash)
from the drawing-a-line dept.)
- Reference: 0180444635
- News link: https://slashdot.org/story/25/12/23/1334206/china-bans-e-commerce-platforms-from-forcing-lowest-prices-or-abusing-algorithms
- Source link: https://www.scmp.com/tech/tech-trends/article/3337315/china-bans-e-commerce-platforms-forcing-lowest-prices-or-abusing-algorithms
China has unveiled new rules to rein in aggressive pricing tactics by online platforms, prohibiting e-commerce operators [1]from forcing merchants to offer discounts or setting different prices based on user demographics without consent. The 29-article regulation -- jointly issued over the weekend by the National Development and Reform Commission, State Administration for Market Regulation (SAMR), and Cyberspace Administration of China -- lays out detailed compliance requirements that target several long-standing pain points as competition among internet giants has often eroded the rights of both consumers and merchants.
To restore merchant autonomy on pricing, the rules ban platform operators from leveraging their dominant scale to impose "lowest price" agreements. Platforms are prohibited from using traffic throttling, search ranking demotions, or algorithm penalties to pressure merchants into predatory price-cutting or exclusive pricing arrangements.
[1] https://www.scmp.com/tech/tech-trends/article/3337315/china-bans-e-commerce-platforms-forcing-lowest-prices-or-abusing-algorithms
To restore merchant autonomy on pricing, the rules ban platform operators from leveraging their dominant scale to impose "lowest price" agreements. Platforms are prohibited from using traffic throttling, search ranking demotions, or algorithm penalties to pressure merchants into predatory price-cutting or exclusive pricing arrangements.
[1] https://www.scmp.com/tech/tech-trends/article/3337315/china-bans-e-commerce-platforms-forcing-lowest-prices-or-abusing-algorithms
Interesting.... (Score:1)
by Smonster ( 2884001 )
They are more physical store than online, but this is pretty much both Costco and Walmart's whole business strategy.
Re: Interesting.... (Score:1)
by Disco Ninja ( 7135795 )
I feel the main difference is that Costco and Walmart negotiate for lower prices on goods they purchase from distributors or manufacturers compared to E-Stores that only show products on their website instead of buying them to then sell them to consumers.
Well, one-party dictatorships ... (Score:2)
by Qbertino ( 265505 )
... can have the occasional advantage, I guess. Not sure if I would want to live in one though.
china's figuring it out (Score:2)
In some ways China has much better consumer-protection laws than the USA. Big business over there doesn't have nearly as much control over legislation and government operations.
It's rather ironic that our basis of government, originally intended for personal freedom, has been so heavily leveraged by big business that it can block the majority of common-sense limitations on market control.
Re: china's figuring it out (Score:2)
The US has *business-protection laws, for the most part :-(
Re: china's figuring it out (Score:2)
"personal freedom"
If you said about Xi in China what you say about Trump, would you be jailed?
Re: (Score:2)
> "personal freedom"
> If you said about Xi in China what you say about Trump, would you be jailed?
You'd probably end up being an organ donor. China is way ahead on health care too, in that respect. 8^/
Re: (Score:2)
In the US masked men will toss you into a van. If you're a citizen you'll probably get released within days. Otherwise who knows.
Re: (Score:2)
> In some ways China has much better consumer-protection laws than the USA. Big business over there doesn't have nearly as much control over legislation and government operations.
> It's rather ironic that our basis of government, originally intended for personal freedom, has been so heavily leveraged by big business that it can block the majority of common-sense limitations on market control.
You have to realize that China is doing this to prevent a corporation from getting "too big" for the government. A corpor
Re: (Score:2)
It's not because the system has been leveraged, it's that getting everyone to agree on new rules is harder than telling people what they will be.
Basically, you figured out the one upside of a dictatorship.
Re: (Score:2)
The CCP doesn't want anyone else to utilize a system that isn't part of their social credit system. Don't mistake an even bigger control freak flexing its own muscles as a sign of actual benevolence.