Core Viewpoint - The platform economy is currently trapped in a "low-price competition" and "subsidy war" dilemma, necessitating urgent solutions to transition towards healthy competition focused on efficiency and service [1][23]. Group 1: Investigation Initiatives - The "Breaking 'Involution' and Reshaping Ecology" investigation action was initiated by the Digital Economy New Media & Think Tank Network Economic Society to promote healthy development in the platform economy [1][23]. - This investigation follows the significant achievements of last year's "Refund Only" investigation, aiming for a more comprehensive and in-depth analysis [1]. Group 2: Expert Involvement - The investigation involves collaboration with university professors, associations, think tank experts, investors, lawyers, and analysts to deeply interpret the "involution-style" competition in the platform economy [9]. - A report titled "2025 Platform Economy 'Anti-Involution' Analysis Report" will be published as a result of this investigation [9]. Group 3: Key Issues Identified - The investigation highlights several practical challenges in applying core legal principles, such as the difficulty in cost recognition for predatory pricing and the ambiguity in defining market dominance in a two-sided market [11][12]. - Issues related to algorithmic collusion and the challenges of proving such behavior under current antitrust laws are also emphasized [13]. Group 4: Legal Gaps and Recommendations - There is a lack of clarity in recognizing data abuse and data monopoly, which hampers effective enforcement against platforms that utilize data advantages to stifle competition [14]. - Recommendations include refining platform economy-specific regulations, enhancing data and algorithm governance, and optimizing enforcement mechanisms and liability systems [18][19][20]. Group 5: Focus Areas of Investigation - The investigation will focus on various sectors, including retail e-commerce platforms (e.g., JD.com, Taobao, Douyin), local life (instant retail) platforms (e.g., Meituan, Ele.me), cross-border e-commerce platforms (e.g., Amazon, AliExpress), ride-hailing platforms (e.g., Didi Chuxing), and online travel platforms (e.g., Ctrip, Qunar) [24][32].

Core Viewpoint - The platform economy in China is currently facing severe "involution" characterized by low-price competition and subsidy wars, necessitating a comprehensive investigation and reform to promote healthy development [1][31]. Group 1: Characteristics of "Involution" in Platform Economy - The competition manifests in extreme price wars, with practices like "one penny flash sales" in community group buying and "0 yuan rides" in ride-hailing becoming commonplace, leading to negative profit margins for many platforms [11]. - There is intense internal competition for traffic, with advertising costs on e-commerce platforms rising by 40% over three years, and user retention rates on short video platforms dropping to around 30% due to low-quality content [12]. - The homogeneity of business models is evident, with over 80% of live-streaming platforms using similar low-price strategies, and local service platforms showing a 75% overlap in functionalities [13]. - Monopolistic competition is highlighted by major platforms imposing "choose one from two" clauses on over 60% of core merchants, squeezing smaller platforms' market share to below 15% [14]. Group 2: Root Causes and Core Contradictions - The deep-rooted issues include chaotic capital expansion, with 70% of funding in 2023 directed towards price subsidies and only 15% towards technological research and development [15]. - There is a lack of innovation capability, with an average R&D investment intensity of 3.2%, significantly lower than the 8% seen in international giants [15]. - Regulatory lag is a concern, with inefficient cross-regional supervision and lengthy identification processes for new competitive behaviors [15]. - The conflict between short-term traffic and long-term value is evident, as 90% of platforms focus on user growth at the expense of technological accumulation [16]. - The imbalance between platform dominance and ecosystem balance results in major platforms extracting excessive profits while reducing merchant profits to 60% of the industry average [16]. - Low-price competition has led to a 30% exit rate of small and micro enterprises from the market, adversely affecting employment [17]. Group 3: Negative Impacts of "Involution" - The profitability of platforms is collapsing, with 12 out of 15 major platforms reporting a year-on-year decline in net profits in 2023, and an average asset-liability ratio rising to 65% [18]. - Innovation motivation is dwindling, with R&D investment ratios decreasing for three consecutive years and a 18% drop in patent numbers [18]. - The supply chain is suffering, with 30% of agricultural suppliers reducing planting areas due to price pressures, and manufacturing firms lowering raw material standards by 15% [19]. - Employment quality is declining, as delivery workers are working over 12 hours daily with an 8% decrease in income, while the closure rate of small businesses has risen by 22% [19]. - The misallocation of resources is severe, with ineffective subsidies in the platform economy exceeding 500 billion yuan in 2023, equivalent to the R&D investment of three medium-sized cities [20]. - Tax base erosion is evident, with tax revenue losses in the platform economy estimated to account for 12% of the industry's taxable amount [21]. Group 4: Pathways to Resolution and Key Measures - Platforms are encouraged to adopt transformation strategies, such as investing 20 billion yuan in smart warehousing to enhance delivery efficiency by 40% [22]. - Collaborative governance solutions include establishing price self-discipline mechanisms, with 78% of platforms signing compliance agreements [24]. - Innovative regulatory measures are being implemented, including a dynamic negative list for platform competition that clarifies 20 prohibited behaviors [27]. - A balanced regulatory framework is proposed, allowing start-ups a three-year trial period while enforcing stricter compliance checks on major platforms [28].

Core Viewpoint - The Chinese government is intensifying its "anti-involution" policies to combat low-efficiency competition in the platform economy, aiming to shift from chaotic "traffic involution" to a new phase of healthy competition focused on efficiency and service [2][9]. Group 1: Policy Background - "Anti-involution" has become a key term in China's economic governance, with significant policy developments from July 2024 to March 2025, including the introduction of the revised Anti-Unfair Competition Law, which prohibits platforms from forcing merchants to sell below cost [2][3]. - The series of policies aims to curb malicious competition, protect stakeholders' rights, and drive the industry towards high-quality development [2][3]. Group 2: Industry Challenges - Various sectors, including live e-commerce, retail e-commerce, food delivery, ride-hailing, and online travel, are deeply entrenched in "involution" and face severe challenges due to ongoing low-price wars and subsidy battles [2][4]. - The food delivery industry exemplifies this issue, where platforms transfer costs to merchants through irrational subsidies and rising commissions, creating a vicious cycle [4][6]. Group 3: Investigation Actions - The "Breaking 'Involution' and Reshaping Ecology" investigation initiated by the China E-Commerce Research Center focuses on major platforms across retail e-commerce, local life services, cross-border e-commerce, ride-hailing, and online travel [9][20]. - The investigation will include real-time monitoring of "involution" issues, extensive research on platforms' responses to policies, expert analyses of industry pain points, and multi-channel dissemination of findings [20][22]. Group 4: Future Directions - The investigation aims to establish a new competitive dimension centered on "efficiency" and "service," moving beyond mere traffic and price competition to enhance supply chain optimization and technological empowerment [22]. - Regulatory measures and legal deterrents are necessary to address the current challenges, but a sustainable evaluation system focused on creating real social value is essential for long-term success [22].

Core Viewpoint - The newly revised Anti-Unfair Competition Law of the People's Republic of China, effective from October 15, 2025, aims to strengthen platform responsibilities and address "involution" competition within the platform economy [1] Group 1: Legislative Changes - The revised law prohibits platform operators from forcing or indirectly forcing internal operators to sell goods below cost, disrupting market competition [1] - The law mandates platforms to establish mechanisms for reporting and resolving unfair competition complaints and to take necessary actions upon discovering such behaviors [1][3] Group 2: Market Dynamics - The government emphasizes the importance of regulating "involution" competition, particularly in the internet platform sector, which has seen intense competition and price wars in areas like food delivery and local services [1][2] - The internal competition among platforms is exacerbated by price transparency, leading to rapid imitation among small businesses and resulting in product homogeneity and intensified price competition [3] Group 3: Economic Implications - The law aims to create a stable regulatory environment that encourages healthy competition rather than destructive price wars, allowing companies to focus on value creation and innovation [3][4] - By regulating competition, the law seeks to protect the rights of consumers, platform operators, and gig workers, ensuring a fair and orderly competitive landscape [2][3]