Regulations to streamline online trading platforms

China will promote the development of its burgeoning platform economy to be healthier and more well-regulated, and will introduce new policies to regulate unfair practices in sectors such as e-commerce, said the country's top market regulator at the sidelines of the ongoing two sessions on Wednesday.

Luo Wen, head of the State Administration for Market Regulation, said the country plans to step up the introduction of a regulatory rule for online trading platforms to establish a long-term mechanism that aims to safeguard the rights of all relevant parties.

Platform companies mainly refer to those leveraging online marketplaces to do business. In China, a group of platform companies, including Alibaba Group, Tencent Holdings and Meituan, have played a big role in driving internet and tech development.

Luo said the market regulator will take steps to prevent those platforms from engaging in price wars, in which businesses are forced into unsustainable price-cutting to stay competitive, he said, adding that a compliance guideline for online trading fees will also be launched.

"The above measures aim to introduce clearer pricing rules and push platforms to optimize their fee structures, helping small and medium-sized businesses lower costs and improve efficiency," Luo said.

He also disclosed that the administration will launch a new rule to supervise the booming livestreaming sector to address concerns over false advertising, counterfeit goods and exploitative marketing practices.

According to him, such moves are part of the country's strong efforts to support platform enterprises in their roles of driving growth, creating jobs and competing internationally.

Currently, some gig workers such as food delivery riders and consumers have reported concerns over opaque algorithms, price discrimination driven by big data and fake orders that manipulate rankings by platforms.

To address this, Luo said the regulator will work with relevant departments to enhance comprehensive governance, urging platforms to increase algorithm transparency and genuinely protect the rights of gig workers and consumers.

"We will push platforms to optimize algorithms and ensure 'platforms for good' and fair treatment for all participants," he said.

In addition, Luo said that the problem of arbitrary inspections involving enterprises will be further rectified this year.

"For industries that do not involve safety and life and health, a 'no disturbance' list will be established. On-site inspections will no longer be carried out for enterprises within the scope of the list," he added.

chengyu@chinadaily.com.cn