China moves to regulate internet pricing, targeting algorithmic abuse

China released a new draft of internet pricing regulations that focus on curbing significant data discrimination and encouraging fair competition in the digital economy.

The National Development and Reform Commission (NDRC), the State Administration for Market Regulation, and the Cyberspace Administration of China jointly announced the proposal on August 23, 2025.

The authorities claimed that the new proposal addresses concerns over algorithmic pricing and consumer rights.

According to the draft, rules are designed in a way that forbid online platforms from using big-data profiling to charge different prices to consumers for the same product or service under similar circumstances.

This will combat pricing manipulation practices that are often criticised as exploitative, including user behaviour, purchasing habits, or perceived ability to pay.

After enactment of this draft, platforms will need to disclose fees, promotions, and subsidies clearly.

The rules also prohibit companies from undermining merchants by reducing store traffic or delisting products for the purpose of pricing control.

The draft focuses on ensuring transparency by making promotional tactics, rankings, and dynamic pricing transparent. It will ultimately be helpful for the protection of both consumers and small businesses.

NDRC stated, “The platform economy involves many operators whose pricing behavior directly affects consumers. Refining these rules will help ensure orderly, fair competition and protect the rights of both businesses and consumers.”

Earlier, China targeted e-commerce commission fees and refund policies. Resultantly, platforms can no longer unilaterally issue refunds without merchant consent. This move marks a shift from previous practices that merchants claimed caused financial losses.

The country has also made broader efforts to rein in dominant tech platforms such as Alibaba and Meituan, which faced severe action over pricing scrutiny.

Corporate social responsibility is also reinforced in the draft as proposed guidelines call on platforms to reduce fees during emergencies.