Regulating algorithms not against platform economy

The Central Cyberspace Affairs Commission and three other central departments have, through a joint notice issued on Sunday, emphasized the importance of addressing the improper use of algorithms that infringe upon users' legitimate rights and interests, and urged companies to conduct in-depth self-assessments to improve the algorithms.

It is no secret that some express delivery companies have developed apps introducing provisions for customers to pay for a faster delivery, but in their quest to hasten deliveries and increase their business volume by beating their rivals they are forcing delivery personnel to overspeed, often jumping red lights and increasing the risks of accidents, thus compromising public safety.

Similarly, some e-commerce platforms analyze consumers' purchasing history and sell the same products at higher prices the next time they order it, which constitutes a violation of market economy rules.

A reasonable balance that factors in public interest and the security of society as a whole, instead of just the responsible companies, must be found, which in turn requires the designation of a healthier and more rational algorithm model. Further, regulating algorithms is also an internal requirement for breaking free from certain path dependencies and building new development models.

Furthermore, the notice calls for the openness and transparency of algorithms, which include detailed public disclosure of time estimations, cost calculations, route planning and other algorithm rules of express delivery platforms. This is equally important for the long-term development of the platform economy.

On the one hand, openness and transparency of algorithms prevent "black box" operations, in which the internal mechanism is usually hidden from the user; on the other hand, it helps the public view algorithms of such platform companies, thus enhancing public understanding of them.

It is important that the new directives are not misinterpreted as regulation against the development of the platform economy. A recent executive meeting of the State Council, China's Cabinet, clearly stated that developing the platform economy is crucial for expanding domestic demand, stabilizing employment, benefiting people's livelihoods, empowering the real economy and developing new quality productive forces. Further guidance on the healthy development of the platform economy is thus required.

All policy signals indicate that advancing the resolution of typical issues with online platform algorithms is ultimately aimed at promoting the healthy and long-term development of the platform economy, thereby better serving the wellbeing of the people with better regulated algorithm.

BEIJING NEWS