China's market watchdog on Friday released anti-monopoly guidelines for internet platforms to help prevent collusion and unfairly high prices.
KEY DETAILS:
- The guidelines target the use of sophisticated tech to fix prices, warning platforms against using algorithms to coordinate pricing or traffic distribution with competitors.
- Authorities also labelled "all-network lowest price" requirements as a risk, prohibiting dominant platforms from forcing merchants to lower prices on their platform whenever they drop prices elsewhere. They also noted that even smaller platforms could face monopoly charges if they demand equal or better price offers or other conditions than their competitors.
- The guidelines prohibit forced exclusive partnerships. Major platform operators are banned from demanding that merchants pledge not to cooperate with competing platforms without justifiable grounds.
- Platforms are advised against using transaction history, device types, or spending habits to charge different prices to different users for the same service.
Reuters
