China Targets Online Platform Merchant Fee Practices

China's State Administration for Market Regulation (SAMR) has issued draft guidelines to regulate the service fees charged by online platforms to third-party merchants, emphasizing fairness, transparency, and support for small and medium-sized businesses. The proposed rules require platforms, including JD.com, Meituan, Alibaba, and PDD Holdings, to adopt reasonable and flexible pricing models, display fee structures publicly, and seek public input before altering commissions. Platforms are also expected to reduce or waive fees during public emergencies and provide merchants with access to historical pricing data. The guidelines mandate stricter internal compliance, timely responses to merchant concerns, and prohibit unfair practices such as duplicate or unjustified charges. This regulatory move aims to rebalance the relationship between large e-commerce platforms and vendors amid ongoing economic uncertainty and trade tensions. The draft guidelines are open for public comment until June 3.