China targets apps 'bullying' loyal customers with higher price

Big data algorithms single out fans unlikely to flee to competitors

20210915N China travel

Travelers at Beijing Daxing International Airport. A travel-booking site was told to pay damages to a plaintiff who claimed to have charged a higher price for being a repeat customer.  © Reuters

YUSUKE HINATA, Nikkei staff writer

GUANGZHOU -- China's tech regulators have stepped up their crackdown on so-called customer bullying, a practice among internet companies to charge higher prices to loyal customers unlikely to switch to competitors based on data algorithms.

In a landmark case that pushed the topic to the forefront of the national debate, a district court in Zhejiang Province in July ordered travel booking site Trip.com to pay roughly 4,800 yuan ($745) to a customer for false advertising.

Sponsored Content

About Sponsored ContentThis content was commissioned by Nikkei's Global Business Bureau.