Core Viewpoint - The market regulatory authority has imposed a fine of 26.69 million yuan on Chengdu KuaiGou Technology Co., Ltd. for multiple violations in the live e-commerce sector, signaling a "zero tolerance" approach to enforcement [1][2]. Group 1: Regulatory Actions - The market regulatory authority conducted an investigation into Chengdu KuaiGou Technology Co., Ltd. for suspected violations of the E-commerce Law of the People's Republic of China, leading to the identification of several illegal activities [1]. - The company was found to have failed to fulfill information disclosure obligations, charged unreasonable fees to platform operators, neglected consumer safety responsibilities, and did not take necessary measures against intellectual property infringements [1][2]. - The regulatory authority has mandated the company to immediately rectify its illegal activities and has imposed a fine of 26,692,904.62 yuan [2]. Group 2: Industry Implications - The enforcement action against Chengdu KuaiGou Technology Co., Ltd. is intended to promote compliance and protect the rights of small and medium-sized businesses, as well as consumers [2]. - The Sichuan Provincial Market Regulatory Bureau plans to conduct a compliance evaluation of key platforms, including Kuaishou E-commerce, to assess their compliance levels and issue a "compliance rectification list" [3]. - After a year of special governance in the live e-commerce sector, initial signs indicate that industry chaos has been somewhat curbed, with plans for ongoing regulatory efforts to maintain consumer and operator rights [3].

Core Viewpoint - The live-streaming e-commerce industry is facing tightening regulations, with the introduction of a draft regulation that includes a "blacklist system" aimed at enhancing oversight and compliance among platforms, operators, and marketers [2][4][12]. Regulatory Developments - The National Market Regulation Administration and the National Internet Information Office have drafted the "Live E-commerce Supervision Management Measures (Draft for Comments)" which includes 57 detailed provisions across seven chapters [5][12]. - Key provisions include the establishment of a "blacklist system" for live-streaming operators and marketers who violate regulations, preventing them from re-entering platforms through account changes [6][12]. - The draft encourages information sharing of the blacklist across platforms to ensure cross-platform accountability [7][22]. Responsibilities of Stakeholders - Live-streaming platforms are required to verify qualifications, implement training mechanisms, and manage violations effectively [6][12]. - Operators must publicly display sales entity information and ensure accurate pricing and promotional content, with strict penalties for misleading advertising [8][10]. - Marketing personnel and their service agencies must conduct thorough compliance checks and maintain records for at least three years [9][10]. Impact on Industry Players - The tightening regulations may hinder the return of previously banned streamers, as the draft aims to enforce strict accountability and quality standards [12][21]. - Notable streamers, including Viya, are attempting to re-enter the market through new initiatives, but face significant challenges due to the new regulatory landscape [1][13][21]. - The draft reflects a broader trend of platforms implementing their own regulations to address industry issues and promote a more compliant and transparent ecosystem [23][24].