China's State Administration for Market Regulation Photo: VCG

Chinese market regulator on Friday highlighted efforts to rein in disorderly practices in livestreaming e-commerce and strengthened handling of violations during the 14th Five-Year Plan period (2021-25), pledging to continuously improve the regulatory framework for the platform economy to ensure its sustained and healthy development, according to a press conference on Friday.

China's platform economy is at a critical stage of transformation. Over the past five years, digital technology has integrated rapidly with various industries, leading to the emergence of new business forms and models, which have created new growth drivers, Deng Zhiyong, Vice Minister of the State Administration for Market Regulation (SAMR) told the press conference on Friday. 

However, he pointed out that potential risks such as traffic prioritization, algorithm abuse, and disordered competition have also affected the healthy development of the platform economy.

During the period, the SAMR has taken decisive action to tackle various irregularities in the platform economy, the official said. "This includes a particular focus on curbing misconduct in livestreaming e-commerce, with intensified monitoring and enforcement efforts leading to the investigation of major cases involving entities like Three Sheep Group.

Additionally, the SAMR has urged online trading platforms to eliminate unreasonable restrictions, such as "refund-only" policies, "automatic price matching," and mandatory freight insurance, while improving the fairness and transparency of fee structures, Deng said. 

Food delivery platforms have also been directed to standardize promotional practices, engage in rational competition, and contribute to a healthy industry ecosystem, the official noted.

Through joint special campaigns with relevant departments, regulators have prompted platforms to remove 4.541 million illegal product listings, suspend services to 58,000 online stores, and handle 105,000 internet-related cases, data revealed at the press conference showed.

"We adhere to a balanced approach of regulation and promotion, combining firmness with flexibility to maintain order in online transactions and foster a cleaner digital market environment," Deng said.

Furthermore, during the period, the SAMR has established a policy system to promote orderly competition and innovation in the platform economy. It introduced rules such as those on online transaction supervision, law enforcement coordination, and management standards for individual online stores to enhance regulatory efficiency.

At the same time, the regulator facilitated the revision of the anti-monopoly law and the anti-unfair competition law, and issued supporting guidelines to clarify competition rules for the sector, according to Deng.

A national technical committee on standardizing platform economy governance was also established to accelerate the development of relevant national standards, strengthen standard guidance, and enhance industry self-regulation.

The SAMR has also issued guidance to help platforms improve their compliance management systems. During major events and shopping festivals like "6·18" and "Double 11" shopping festival, the agency provides compliance reminders to guide platforms in standardizing their promotional activities.

The SAMR has piloted data-sharing services to assist platforms in effectively identifying and removing non-compliant entities. It has also maintained regular communication with platforms, merchants, delivery riders, and livestreamers to address their concerns and provide guidance, according to Deng.

Moving forward, Deng stressed that the SAMR will continue to uphold the principle of balancing regulation with development, further refining the long-term regulatory framework for the platform economy. 

"By enhancing proactive and comprehensive oversight capabilities, the agency aims to promote the sustained and healthy growth of the platform economy," he added.

Global Times