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Beijing Moves to Regulate Online Platform Fees Amid Merchant Complaints

By  |  May 25, 2025

China’s top market watchdog has proposed new guidelines aimed at regulating the service fees online platforms charge third-party merchants, intensifying Beijing’s efforts to support local businesses amid economic uncertainty and ongoing trade tensions with the U.S., according to Bloomberg.

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    The draft rules, released Sunday by the State Administration for Market Regulation (SAMR), urge internet platforms to implement “reasonable” and more transparent pricing models. Per Bloomberg, the guidance specifically instructs companies to consider the financial condition and operational status of their merchant partners when determining fees.

    This regulatory move could significantly impact major digital commerce players such as JD.com, Meituan, and PDD Holdings Inc., which rely heavily on commissions, membership dues, and other service charges from sellers as key revenue streams.

    SAMR’s draft, which is open for public comment until June 3, also encourages platforms to adopt flexible pricing strategies that ease the burden on merchants, particularly small businesses. The agency emphasized the need to simplify fee structures and increase support for these smaller vendors, many of whom have raised concerns over opaque and complicated pricing systems on the platforms.

    According to Bloomberg, this initiative is part of a broader push by Chinese authorities to rebalance the relationship between online marketplaces and their vendors. In recent years, Beijing has stepped up scrutiny of consumer-first policies employed by tech firms, which many merchants argue come at the expense of their profitability.

    The proposed rules aim to enhance compliance around service fees and foster a fairer digital marketplace environment.

    Source: Bloomberg