China's Regulator Seeks Public Feedback on Draft Guidelines for Platform Fees

Published on May 26, 2025.
China's Regulator Seeks Public Feedback on Draft Guidelines for Platform Fees

In a significant move towards regulating the rapidly evolving platform economy, China's top market regulator has initiated a public consultation on draft compliance guidelines aimed at governing the fees charged by online transaction platforms. This initiative, reported by Xinhua News Agency, reflects the government's commitment to fostering an orderly and sustainable development within the digital marketplace.

The draft guideline outlines 28 articles that encompass five essential measures designed to enhance fairness and transparency in the pricing structures of online platforms. By establishing core principles centered on fairness, legality, and good faith, the guidelines emphasize that all charges should be aligned with service agreements, trading practices, and operational costs.

Key to these guidelines is the encouragement for platforms to alleviate the financial burden on merchants, particularly small and medium-sized businesses. This may involve implementing flexible pricing strategies, offering fee reductions, or providing discounts as a means to support the operational challenges faced by these companies.

To ensure compliance with the new standards, the guidelines mandate that platforms enhance their internal oversight. This includes the designation of specific personnel responsible for monitoring fees and developing systems to detect and prevent unreasonable charges. Furthermore, platforms will be required to disclose their fee structures publicly, adhere to commitments regarding charge waivers or reductions, and eliminate unfair practices such as duplicate billing.

Enhancing oversight, the guidelines also stipulate that platforms must address merchant concerns promptly, cooperate with regulatory inspections, and promote self-regulation within the industry to maintain fair competition. Such measures signal a robust framework aimed at reinforcing ethical practices among digital transaction platforms.

In an insightful commentary, Bian Yongzu, an executive at Modernization of Management magazine, highlighted the critical nature of these guidelines. As China stands as a leading powerhouse in the platform economy, the emergence of significant online enterprises across diverse sectors has transformed consumer accessibility and accelerated the nation’s digital evolution.

Bian further elaborated that these regulations are vital for mitigating disorderly growth within the platform sector. They aim to bolster consumer protection while establishing a stronger legal foundation for dispute resolution. He posited that by delineating clear operational boundaries, China is paving the way for a more organized and secure digital economy, potentially serving as a blueprint for other nations.

Liu Dingding, a noted technology industry analyst, remarked that the guidelines will instigate a shift towards a more transparent pricing landscape for businesses. This change promises to enhance operational practices while simultaneously creating a fairer environment for consumers, thereby lessening the risks often associated with online transactions.

By nurturing transparency and compliance, the guidelines aspire to cultivate a robust and sustainable e-commerce ecosystem in China, ultimately fostering consumer trust and supporting long-term sector growth. However, Liu cautioned that these guidelines are in the consultation stage and should be integrated with existing laws, such as the E-Commerce Law and data protection regulations, to ensure a comprehensive regulatory framework.

As a testament to the growing significance of e-commerce, the National Bureau of Statistics recently indicated that China's online retail sales hit 4.74 trillion yuan (approximately 660.3 billion dollars) in the first four months of 2025, representing a 7.7 percent increase year-on-year. This growth places online retail sales of physical goods at 3.93 trillion yuan, accounting for 24.3 percent of total retail sales.

In line with these developments, the Government Work Report 2025 underscores a commitment to promoting a well-regulated platform economy that fosters innovation, elevates consumption, and stabilizes employment across the nation. This emphasis highlights the strategic importance of the digital economy in China's broader economic landscape.

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