China Proposes Crackdown on Big Data Price Gouging to Promote Fair Competition

China’s National Development and Reform Commission (NDRC), in collaboration with the State Administration for Market Regulation and the Cyberspace Administration of China, has introduced draft regulations aimed at addressing concerns around "big data price gouging" on online platforms [1]. The proposed rules seek to promote fair competition, enhance transparency, and prevent exploitative pricing practices that have increasingly drawn public attention.

The draft regulations would prohibit platforms from adjusting prices or fees for the same product or service based on consumers’ individual data—such as willingness or ability to pay, browsing habits, or purchasing preferences—without the consumer’s knowledge [1]. Additionally, platforms would be required to clearly disclose pricing structures, including promotions, subsidies, and fees, to ensure greater openness in transaction processes.

A key focus of the proposal is to eliminate unfair practices such as restricting merchant traffic or removing products from shelves to undermine independent pricing decisions [1]. The regulators also emphasized the need for platforms to establish accountability in data usage and pricing behavior while encouraging collaboration among regulators, industry associations, and platform operators.

The move reflects an evolving regulatory landscape for China’s tech sector. Recent months have seen a series of regulatory initiatives targeting areas such as commission fees, data privacy, and rare earths, signaling a broader strategy to rein in unregulated market power and ensure alignment with public interest [3]. In May, the State Administration for Market Regulation had already proposed stricter controls on e-commerce platform commissions, a move that led to a sharp decline in Meituan’s share price [1].

The draft regulations also aim to reduce the financial burdens on small and medium-sized businesses by requiring platforms to assume greater social responsibility during crises such as natural disasters or public health emergencies [1]. Platforms would be expected to adjust or waive fees in such circumstances and establish fair pricing frameworks based on operational costs, consumer behavior, and market norms.

Industry observers suggest that the new rules may reshape how platforms leverage data for pricing strategies, particularly those relying on dynamic pricing and algorithmic personalization [2]. While the rules could limit revenue optimization for large firms, they are expected to enhance consumer trust and potentially reduce future regulatory risks.

The proposal is currently open to public consultation, with regulators inviting feedback for a month. The final implementation remains to be seen, but the initiative underscores the government’s growing role in regulating the digital economy and ensuring equitable market practices [1].

Sources:

[1] China drafts new rules to curb big data price gouging (https://coinmarketcap.com/community/articles/68a9a622302c96076a1a0140/)

[2] Latest News & Videos, Photos about transparency in pricing (https://economictimes.indiatimes.com/topic/transparency-in-pricing)

[3] What to know about China's new regulations on rare earths (https://www.yahoo.com/news/articles/know-chinas-regulations-rare-earths-123050403.html)