Look back! Unfair competition on e-commerce platform will be strictly regulated.

Published: Nov 18, 2021 08:28

The problem of unfair competition on Internet platforms is attracting the attention of national regulatory authorities, and from the frequent actions of anti-monopoly and anti-unfair competition in the past two years, we can see the general trend in the future: Internet e-commerce platform is an important branch of retail channels at present and in the future, but its behavior must be regulated by relevant laws and regulations, and with the improvement of anti-monopoly and anti-unfair competition laws and regulations, It indicates that the good days of the Internet e-commerce platform will be over.

Recently, the official website of the State Administration of Market Supervision published its reply on its proposal to "prevent large Internet companies from using online group buying to form a market monopoly to enter the grass-roots areas of cities and counties, seriously affecting the interests of the masses."

According to the State Administration of Market Supervision, NPC deputies' understanding of the problems existing in community group buying, as well as suggestions on "cooling community group buying in disorderly competition with strict law enforcement and strong supervision" and "defining and regulating related issues as soon as possible, restricting capital expansion with monopoly tendency in accordance with the law, and scientifically integrating technological advantages with consumer demand and real economy," and other suggestions, for us to improve the legal system of platform economic supervision. It is of great reference significance to improve the supervision mechanism and improve the efficiency of supervision, which we very much agree with.

With regard to the problems and potential risks of community group buying, the State Administration of Market Supervision pointed out that with the large-scale entry of major Internet platform enterprises into the community group buying market, problems such as imperfect rules, unreasonable order, and illegal operation have become increasingly apparent, which has aroused great concern and strong concern from all walks of life.

First, in the traditional retail side, the forced price war results in the negative growth of sales and profit margins of relevant enterprises; on the supply side, low-price dumping causes brand suppliers to encounter chaos such as cross-provincial serial goods, low-price external procurement, non-invoice bidding procurement and so on. It undermines the normal development of the existing supply chain industry.

Second, the community group buying platform has huge subsidies and sells goods below the cost price, and low-price dumping disturbs the market price order; squeezes the employment space of small stall owners, small traders and other groups, affecting social stability. Offline community economic operators are mostly farmers, community people, risk tolerance is low, trapped by age, education and other factors can not quickly change roles to engage in other industries, may lead to an increase in unemployment and affect social stability.

"since last year, the General Administration of Market Supervision has resolutely implemented the central strategic plan of 'strengthening anti-monopoly and preventing disorderly expansion of capital', actively worked with relevant departments to make systematic planning and comprehensive policies, and carefully formulated work measures and programs. strengthen supervision and law enforcement in the economic field of the platform, and governance results are gradually showing." It was mentioned in the reply.

The above General Administration of Market Supervision responded to the suggestion of deputies to the National people's Congress, although it was only a response to "Internet companies marching into community group buying on a large scale". However, we can see that the regulatory authorities are determined to investigate and deal with the abuse of market dominance in the platform economy in accordance with the law and eliminate illegal acts such as restricting competition, low-price dumping, price fraud, and so on.

In addition, we can also smell more "pressure" from the "low profile" of major platforms such as Tmall and JD.com on Singles Day this year. No matter how "peak" the final figures released on Singles Day this year, each of us household appliances really feel different from previous years. First, the Internet platform does not have the "countdown" night carnival in previous years, the second is that the consumers around us do not have the passion to stay up late many years ago, and the third is that the express delivery after Singles Day has less "burst" news. All this shows that the Internet platform has reached its peak.

The new retail in the future will be an era of fair competition and rational consumption, which may be good news for many home appliance dealers who stick to brick-and-mortar stores, but it still needs a process of slow transformation.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
High-Grade NPI Smelters Face Profit Pressure Amid Flat Raw Material Prices and Limited Nickel Ore Decline
Apr 3, 2026 19:34
High-Grade NPI Smelters Face Profit Pressure Amid Flat Raw Material Prices and Limited Nickel Ore Decline
Read More
High-Grade NPI Smelters Face Profit Pressure Amid Flat Raw Material Prices and Limited Nickel Ore Decline
High-Grade NPI Smelters Face Profit Pressure Amid Flat Raw Material Prices and Limited Nickel Ore Decline
[SMM Nickel Flash News] Based on the cash cost of high-grade NPI calculated using nickel ore prices from 25 days earlier, profits at high-grade NPI smelters came under pressure during the week, with the sector as a whole remaining in a state of losses or marginal profitability. It is expected that next week, prices of auxiliary materials on the raw material side may remain flat, while the decline in nickel ore prices will likely be limited. High-grade NPI prices will still be under pressure amid back-and-forth negotiations between upstream and downstream, and smelter profits will be unlikely to see any significant improvement.
Apr 3, 2026 19:34
Refined Nickel Prices Decline, High-Grade NPI Discount Narrows; Downward Trend Expected to Continue
Apr 3, 2026 19:31
Refined Nickel Prices Decline, High-Grade NPI Discount Narrows; Downward Trend Expected to Continue
Read More
Refined Nickel Prices Decline, High-Grade NPI Discount Narrows; Downward Trend Expected to Continue
Refined Nickel Prices Decline, High-Grade NPI Discount Narrows; Downward Trend Expected to Continue
[SMM Nickel Flash] This week, the price center of refined nickel moved lower, while high-grade NPI prices remained stable. The average discount of high-grade NPI against refined nickel narrowed to 262.4 yuan/nickel unit. High-grade NPI prices were expected to remain under pressure next week, while refined nickel prices were expected to continue their downward trend. The average discount of high-grade NPI against refined nickel was expected to continue narrowing, and the driver for conversion of NPI to high-grade nickel matte weakened.
Apr 3, 2026 19:31
SMM Nickel Flash: High-Grade NPI Prices Drop, Market Enters Negotiation Phase
Apr 3, 2026 19:30
SMM Nickel Flash: High-Grade NPI Prices Drop, Market Enters Negotiation Phase
Read More
SMM Nickel Flash: High-Grade NPI Prices Drop, Market Enters Negotiation Phase
SMM Nickel Flash: High-Grade NPI Prices Drop, Market Enters Negotiation Phase
[SMM Nickel Flash] The average SMM price of 10-12% high-grade NPI fell WoW by 1 yuan/nickel unit to 1,082.5 yuan/nickel unit (ex-factory, tax included), while the average price of Indonesia's NPI FOB index fell WoW by $0.02/nickel unit to $136.58/nickel unit. The high-grade NPI market generally remained stable, and after the transaction center stabilized, the market entered a state of back-and-forth negotiations between upstream and downstream, with prices under pressure in the short term.
Apr 3, 2026 19:30
Look back! Unfair competition on e-commerce platform will be strictly regulated. - Shanghai Metals Market (SMM)