China's Market Watchdog Unveils New Anti-Monopoly Rules for Internet Platforms
China's market watchdog has officially released a comprehensive set of anti-monopoly guidelines specifically designed to limit the power of major internet platforms. The regulations, formally announced on Friday, February 13, aim to ensure fair competition across the digital marketplace and prevent platforms from imposing unfairly high prices on consumers.
Targeting Algorithmic Coordination and Pricing Tactics
One of the most significant aspects of the new guidelines focuses on the sophisticated algorithms used by these platforms. According to a report from the Reuters news agency, the government has explicitly warned companies against utilizing advanced technology to coordinate pricing strategies or manipulate traffic distribution with their competitors. This move represents a direct challenge to the opaque technological practices that have enabled market dominance.
The watchdog is also putting an end to a prevalent industry tactic known as "all-network lowest price" requirements. This prohibition means that dominant platforms can no longer force sellers to lower their prices simply because they offered a discount on a rival site. Furthermore, the regulations clarify that smaller platforms are not exempt; they too can face monopoly charges if they demand that merchants provide them with "equal or better" deals than those offered to competitors.
Prohibition of Forced Exclusive Partnerships
The new guidelines strictly prohibit forced exclusive partnerships, effectively banning major platforms from demanding that merchants pledge not to work with competing apps unless there is a clear and justifiable reason. This measure is intended to break down barriers to entry and foster a more open and competitive ecosystem where businesses can operate across multiple platforms without restriction.
Additionally, platforms are advised against using sensitive data—such as transaction history, device types, or individual spending habits—to charge different prices to different users for the same service. This addresses growing concerns about algorithmic discrimination and ensures that all consumers receive equitable treatment regardless of their digital footprint.
Broader Context: China's Regulatory Push on Technology
This latest regulatory action is part of a broader effort by Chinese authorities to rein in the influence of large technology firms. In December of last year, China proposed strict rules for artificial intelligence (AI) aimed at safeguarding children and preventing chatbots from offering advice that could lead to self-harm or violence. Under those proposed rules, developers will need to ensure their AI models do not generate content that promotes gambling or other harmful behaviors.
Once finalized, these AI regulations will apply to all AI products and services operating within China, complementing the anti-monopoly measures to create a more controlled and ethical digital environment. Together, these initiatives reflect a significant shift in China's approach to technology governance, prioritizing consumer protection and market fairness over unchecked corporate growth.
