Online service contract disputes surge, Beijing court says

Beijing Internet Court announced on Tuesday that it has seen a significant increase in contract disputes involving online services, particularly in online shopping and livestreaming, in recent years.

Since its establishment on Sept 9, 2018, the court has handled 35,869 such cases, with the number continuing to rise, said Zhao Changxin, the court's vice-president. Of these, 60.6 percent were related to online shopping, while 36.1 percent involved livestreaming.

"The rapid growth in these types of cases highlights the growing challenges and governance risks in online transactions and the livestreaming industry, necessitating judicial rulings to clarify the extent of platforms' authority and their responsibilities," Zhao told a news conference.

He noted that the increase in platform governance cases underscores how digital platforms are becoming integral to various sectors of the economy and society. "As platform companies innovate with new business models and competitive strategies, the diversity of business scenarios has increased, leading to a greater need for refined platform rules and governance," he said.

"For example, disputes now extend beyond issues like intellectual property infringement and substandard products to include concerns such as merchants misusing data to compromise consumers' personal information or violating rules related to labeling content generated by artificial intelligence," he said.

Zhao emphasized that platforms serve dual roles as both market operators and regulators. In adjudicating cases, the court balances formal and substantive reviews: It respects platforms' autonomy in setting their rules but ensures they do not infringe on users' rights under the guise of autonomy, while also avoiding excessive judicial interference that could undermine platforms' governance capabilities and innovation.

He urged platforms to improve their rule-making processes and cautioned against relying solely on AI and other technologies to manage illegal content or improper data. "It is their duty to rigorously review content and optimize management practices," he added.