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Will the state intervene in community group buying?

Will the state intervene in community group buying? That's for sure. On the afternoon of December 22, the State Administration for Market Regulation and the Ministry of Commerce organized an administrative guidance meeting on standardizing community group buying order. Six Internet platform companies including Alibaba, Tencent, JD.com, Meituan, Pinduoduo, and Didi participated. It issued nine prohibitions on community group buying:

First, it is prohibited to abuse independent pricing power through low-price dumping, price collusion, price gouging, price fraud, etc. In addition to reducing prices of fresh goods, seasonal goods, overstocked goods and other goods in accordance with the law, it is strictly prohibited to dump goods at prices below cost for the purpose of squeezing out competitors or monopolizing the market.

Second, any form of monopoly agreement such as fixing prices, limiting the production or sales volume of goods, or dividing the market shall not be illegally reached or implemented.

Third, abuse of market dominance such as predatory pricing, refusal to trade, tying, etc. without justifiable reasons shall not be carried out.

Fourth, the concentration of business operators shall not be illegally implemented to eliminate or restrict competition. If the concentration of business operators reaches the reporting standards stipulated by the State Council, it must be declared in advance. If the concentration is not declared, the concentration shall not be implemented.

Fifth, unfair competition behaviors such as commercial confusion, false propaganda, and commercial slander are not allowed to harm the fair competition market environment. It is strictly prohibited to fabricate and disseminate false information or conduct misleading commercial promotions, damage competitors' business reputation and product reputation, and deceive or mislead consumers.

Sixth, data advantages must not be used to "kill familiarity" and harm the legitimate rights and interests of consumers.

Seventh, technical means must not be used to harm the order of competition and hinder the normal operations of other market entities. Service agreements, trading rules, technology and other means shall not be used to unreasonably restrict or impose unreasonable conditions on the transactions, transaction prices and transactions with other operators on the platform, or charge fees to the operators on the platform. Unreasonable fees.

Eighth, consumers’ personal information must not be illegally collected or used to cause security risks to consumers.

Ninth, counterfeit and shoddy goods must not be sold to endanger a safe and secure consumer environment.

Furthermore, the state’s huge 6.5 million fine for community group buying can be seen from the state’s intervention in community group buying. It is obvious that the chaos of community group buying will eventually be solved, and the state will also intervene in the formation of community group buying. A level playing field and allowing community group buying to develop in a good direction.