E-commerce platforms under competition scrutiny

E-commerce platforms under competition scrutiny

The National Competition Commission said it would continue monitoring fee policies across the e-commerce sector and require platforms to ensure transparency, fairness and healthy competition while avoiding unreasonable burdens on sellers and consumers.

Shopee said it had completed an internal review and voluntarily proposed postponing the display maintenance programme, which had originally been scheduled to take effect on Friday. — Photo doanhnhansaigon.vn

Shopee said it had completed an internal review and voluntarily proposed postponing the display maintenance programme, which had originally been scheduled to take effect on Friday. — Photo doanhnhansaigon.vn

HÀ NỘI — Việt Nam’s Competition Commission has stepped up scrutiny of fee policies imposed by major e-commerce platforms, including Shopee and TikTok Shop, amid growing concern over rising costs for online sellers and possible knock-on effects for consumers.

According to the regulator, many sellers in Việt Nam faced higher platform charges in May after several e-commerce companies revised their pricing structures.

The authorities have received multiple complaints about Shopee and TikTok Shop increasing existing fees or introducing new charges that could raise operating costs and ultimately push up retail prices.

In response, the competition authority held meetings with sellers on both platforms to collect feedback on fixed fees, transaction charges and other service costs introduced or planned during the month.

Particular attention was given to Shopee’s proposed Display Maintenance Programme. Under the scheme, Shopee would automatically deduct a percentage of revenue from completed orders and transfer it to sellers’ advertising balances to maintain product visibility on the platform.

The standard deduction rate was set at 1 per cent of pre-VAT revenue from successful orders, though sellers could choose rates ranging from 1 per cent to 50 per cent depending on their advertising needs.

Many sellers raised concerns that the money would be deducted before funds reached their accounts, limiting their control over cash flow and marketing budgets.

Following the review, Shopee proposed delaying the rollout of the programme.

In a report submitted to the regulator on Wednesday, Shopee said it had completed an internal review and voluntarily proposed postponing the programme, which had originally been scheduled to take effect on Friday. The company also confirmed it would notify all sellers on the platform of the delay on Thursday.

The National Competition Commission said it will continue to monitor fee policies across the e-commerce sector and will require platforms to ensure transparency, fairness and healthy competition while avoiding placing unreasonable burdens on sellers and consumers. 

Bizhub