Vipshop Photo: VCG

China's market regulator has fined online discount retailer Vipshop 3 million yuan ($463,979) for unfair competition on Monday.

The move is at the heels of the Anti-Monopoly Committee of the State Council, China's cabinet, introduced new guideline to regulate anti-monopoly practices, encouraging business operators across the online platform economy to report any monopolistic behavior. It also said that authorities will waive or mitigate penalties if the operators meet certain standards.

The committee did not identify any specific people or companies, but it said that the guideline applies to all industries and treats all types of market entities equally, and the online platform-based economy is no exception.

China's State Administration for Market Regulation (SAMR), the country's top market regulator filed an investigation into Vipshop for suspected unfair competition in January. 

Vipshop has received written decision outlining the penalty for violating anti-unfair competition law from market regulator and has no objection to the facts stated in the decision. The company will make efforts to update and regulate internal practices, Vipshop said on Monday.

In December last year, China's top market regulator issued fines of 500,000 yuan to three e-commence platforms for false promotions during the "Double 11" online shopping festival.

The three platforms, JD.com, Tmall and Vipshop were fined following consumers' allegations that the platforms raised prices first before giving "discounts" during online shopping promotions on November 11.

Chinese authorities have tightened their scrutiny of big e-commerce platforms with the Central Economic Work Conference stressing that strengthening anti-monopoly rules and preventing the disorderly expansion of capital are among the top priorities for 2021. 

Global Times