China publishes draft guidance for online-platform merchant fees

BEIJING: The Chinese regulator has published draft guidelines for fees online platforms charge third-party merchants, an important source of revenue for companies including JD.com, Meituan and PDD Holdings Inc.

Companies that operate online platforms should charge reasonable fees and take into account factors like the operational status of merchants with which they do businesses, the State Administration for Market Regulation, the country's anti-monopoly regulator, said in a statement on Sunday.

The regulator said the deadline for feedback on the draft guidance is June 3.


This is the latest in a series of steps by Beijing to support local merchants that are under pressure from a sluggish local economy and a trade war with the US, and also have to deal with online platforms' longtime customer-first approach.

The platforms should set flexible pricing strategies for charges including commission, membership and service fees to reduce merchants' burdens, and they should offer better support to smaller businesses, according to the statement.

The guidance was issued after complaints from merchants about issues including "complicated and non-transparent" charges on the platforms, the regulator said. It is intended to help platform companies improve fee-related compliance frameworks and encourage the healthy development of the industry, according to the statement.