Three departments: Platform operators shall not force or indirectly force operators within the platform to sell goods or provide services at prices lower than cost according to their pricing rules, thereby disrupting the market competition order.
The National Development and Reform Commission, the State Administration for Market Regulation, and the Cyberspace Administration of China issued the "Internet Platform Pricing Behavior Rules". The rules stipulate that platform operators and operators within the platform shall not violate Article 14, paragraph 2 of the Price Law of the People's Republic of China by selling goods or providing services at prices below cost with the purpose of excluding competitors or monopolizing the market, disrupting normal production and operation order, damaging national interests or the legitimate rights and interests of other operators. However, price reductions for fresh goods, seasonal goods, overstocked goods, close-dated goods, or services provided at a discounted price for legitimate reasons are exempted. Platform operators shall not force or indirectly force operators within the platform to sell goods or provide services at prices below cost in accordance with their pricing rules, disrupting market competition order. If the business model of a platform operator provides long-term free services to users and benefits innovation and progress, as well as enhances the long-term welfare of operators and consumers, it may not be recognized as a violation of Article 14, paragraph 2 of the Price Law of the People's Republic of China.
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