China’s top market regulator is cracking down on e-commerce platforms. They want to make things fairer for small and medium-sized businesses. The State Administration for Market Regulation, or SAMR, has proposed new rules. These rules target big companies like Alibaba, JD.com, and PDD Holdings. They also affect rising stars like Meituan and Douyin, China’s version of TikTok.
The proposal is called the Guidance on Compliance with Online Commerce Platform Fees. It sets out a list of responsibilities for these platforms. This could mean a big change in how they make money from their merchants. Small businesses might get a better deal.
According to the SAMR, platforms need to reduce costs for smaller merchants. They could do this by lowering fees or offering exemptions. They also need to take on social responsibility during emergencies like natural disasters or health crises. This means reducing or waiving fees during these times.
The new rules also demand more transparency. Platforms must clearly show their fees on their home pages. If they change their fees, they need to give the public at least seven days’ notice. They must also keep a record of prices for three years. This lets merchants see how fees have changed over time.
These regulations come as criticism grows about the platform economy. This economy is known for imposing unclear fees and complicated pricing schemes on millions of merchants. The SAMR says over 900 million users and tens of millions of sellers use these platforms. Their social and economic impact has increased in recent years.
What’s Next?
There’s no set date for these rules to come into effect. But the SAMR will open the proposal to public comments before finalizing it. They’ll incorporate feedback and implement the rules as soon as possible.
China’s E-commerce Boom
China’s online retail market is still growing fast. In the first quarter of 2025, online sales rose by 7.9%. That’s much higher than the global retail growth rate of 4.6%.
This regulatory change adds to a series of actions China’s government has taken to control the influence of tech giants. The goal is to make sure digital progress benefits small market players too.