MOC gives opinion on e-commerce price war

Ministry of Commerce spokesman Shen Danyang said at a press conference that, regardless of their marketing activities, e-commerce companies have to obey laws and regulations safeguarding fair competition, Caijing.com.cn reported.

Shen added that the companies must also work together to promote the healthy and stable development of the home appliances retail market.

The statement is thought to be in response to the price war that recently broke out among several major e-commerce companies.

Suning Appliance and Jingdong Mall engaged in a price war earlier this week after Suning began to sharply reduce its prices on Wednesday.

Liu Qiangdong, chairman of Jingdong Mall, said that no matter how much money is needed to fight against Suning, their investors will say "yes".

Suning and Jingdong are two of the leading electronics and appliances retailers in China, and the price war has involved other players in the online commerce sector, such as Gome Electrical Appliances Holding Ltd, China Dangdang Inc and 51buy.com, a subsidiary of Tencent Holdings.

Alibaba Group's Tmall.com is the only player that has not reduced its prices.

Jingdong Mall's Liu said that large home appliances sold on its online platform would be cheaper than those sold by either Suning or Gome.

Shen said that the ministry has already noticed that a few large-scale e-commerce companies have lowered prices, as well as the resulting heated debate among the general public.

Shen said that the ministry will keep monitoring the issue.