Core Viewpoint - The ongoing conflict between platforms and merchants regarding pricing authority raises questions about fairness in the digital economy, emphasizing the need for platforms to carefully consider the boundaries of their pricing power [1][4]. Group 1: Pricing Authority and Market Dynamics - Ctrip has been reported to unilaterally lower hotel room prices without merchant consent, using an internal tool called "Price Adjustment Assistant" to compare prices with competitors and automatically adjust them [2]. - Merchants argue that pricing authority should belong to them as the providers of products and services, and traditional market dynamics support this notion through supply and demand relationships [2][3]. - The complexity of relationships in the digital economy means that platforms, acting as market organizers, hold significant power over merchants' access to consumers, influencing their pricing capabilities through mechanisms like traffic allocation [2][3]. Group 2: Platform Pricing Control Characteristics - Platforms exhibit diverse pricing control methods, including direct pricing for their own services, reference pricing that merchants feel pressured to follow, and minimum price requirements that serve as tools for competition [3]. - The recent incident illustrates a pricing adjustment that straddles the line between reference and minimum pricing, where merchants can refuse but often feel compelled to comply to maintain visibility on the platform [3]. Group 3: Consequences of Price Manipulation - Merchants facing excessive price reductions may resort to compromising quality, leading to market distortions where inferior products drive out superior ones, ultimately harming consumer choice and quality [4]. - Over-intervention by platforms in pricing can stifle innovation and competition, potentially leading to algorithmic collusion and hidden monopolies [4]. Group 4: Recommendations for Fair Pricing Practices - It is crucial to delineate between reasonable price interventions and overreach, with a clear distinction between suggestive and mandatory pricing controls [4]. - Platforms should enhance transparency regarding their pricing mechanisms and establish internal compliance review processes to assess the impact of pricing strategies on merchants, consumers, and market competition [4].