China's SAMR released anti-monopoly guidelines for internet platforms, targeting practices like 'whole network lowest price' as monopoly risks. It prohibits algorithm-driven price coordination, big data kill-mature pricing, blocking competitors, and predatory below-cost sales. This shifts antitrust from case-by-case to full-scenario rule reconstruction affecting all platforms.
Key Points
- 1.Lists 'whole network lowest price' as a variant of 'pick-one-of-two', coercing merchants via traffic
- 2.Bans implicit collusion via algorithms sharing data or auto-adjusting prices like in ride-hailing/delivery
- 3.Prohibits big data kill-mature (charging loyal users more) and arbitrary link blocking without cause
- 4.Regulates below-cost sales aimed at excluding rivals, not innovation
- 5.Applies to all platforms using rules/data/algorithms to influence competition, not just giants
Impact Analysis
Platforms must overhaul pricing algorithms and data practices, risking fines for non-compliance. AI developers face stricter scrutiny on automated decision-making in China e-commerce. Signals broader regulation of algorithmic behaviors globally.
Technical Details
Guidelines target algorithm-data-tech for implicit coordination, including data sharing, notifications, and auto-price matching. Evidence includes algo traces, data logs, model training. Covers backend features like traffic weighting tied to lowest-price compliance.
