China Issues New Anti-Monopoly Guidelines Targeting Algorithmic Pricing & Platform Exclusivity

Key Takeaways

• Algorithmic Collusion in Focus: The guidelines warn platforms against using algorithms or technical systems to coordinate pricing or traffic distribution with competitors.
• “All-Network Lowest Price” Restrictions: Dominant platforms are prohibited from forcing merchants to match lower prices offered elsewhere, and even smaller platforms could face monopoly scrutiny for similar demands.
• Exclusive Dealing Curbed: Major platforms may not require merchants to avoid working with competing platforms without justifiable grounds.
• Differential Pricing Scrutinized: Platforms are advised not to use transaction history, device type, or spending habits to charge different users different prices for the same service.

Deep Dive

China’s market regulator on Friday released new anti-monopoly guidelines for internet platforms aimed at curbing collusion and unfair pricing practices, as authorities continue tightening oversight of the country’s digital economy.

According to Reuters reporting, the guidelines focus on preventing platforms from using sophisticated technology to distort competition, particularly through algorithm-driven coordination and pricing practices.

The new rules explicitly target the use of algorithms to fix prices or coordinate traffic distribution with competitors. Regulators warned that platforms must not deploy technical systems to align pricing strategies or market behavior in ways that restrict competition.

Authorities also flagged so-called “all-network lowest price” requirements as a potential risk. Under the guidance, dominant platforms are prohibited from forcing merchants to lower prices on their platform whenever those merchants offer discounts elsewhere. Regulators further indicated that even smaller platforms could face monopoly charges if they require merchants to provide equal or better pricing terms than those offered to competing platforms.

The guidelines also ban forced exclusive partnerships. Major platform operators are barred from requiring merchants to commit to not cooperating with rival platforms without legitimate justification.

In addition, the regulator cautioned against discriminatory pricing practices. Platforms are advised not to use data such as transaction history, device type, or consumer spending habits to charge different users different prices for the same service.

The guidance reflects Beijing’s continued effort to address concerns about anti-competitive behavior in the technology sector, with particular emphasis on algorithmic tools and data-driven pricing strategies that have become central to platform business models.

The measures form part of China’s broader campaign to strengthen antitrust enforcement in the internet sector, reinforcing scrutiny over how dominant platforms structure pricing, partnerships, and data use.

The GRC Report is your premier destination for the latest in governance, risk, and compliance news. As your reliable source for comprehensive coverage, we ensure you stay informed and ready to navigate the dynamic landscape of GRC. Beyond being a news source, the GRC Report represents a thriving community of professionals who, like you, are dedicated to GRC excellence. Explore our insightful articles and breaking news, and actively participate in the conversation to enhance your GRC journey.