This text is an automatic translation from Русский. It was generated by AI and may contain inaccuracies.
Read original →The State Duma has passed legislation regulating marketplaces: a ban on discounts without seller consent, algorithm transparency, and mandatory labeling. How this will affect prices and competition between online and offline retail.
On July 22, 2025, the State Duma adopted a law on platform economy regulation, which will come into force on October 1, 2026. The law prohibits marketplaces from setting aggressive discounts without sellers' consent, introduces transparency of ranking algorithms, and mandatory verification of product labeling. Experts warn of possible price increases for consumers and strengthening of traditional retail positions.
On July 22, 2025, the Russian State Duma adopted a law "On the Regulation of Platform Economy Activities," which takes effect on October 1, 2026. It significantly changes the rules of the game for marketplaces like Wildberries and Ozon, while continuing to spark debate among representatives of online and offline retail. Let's break down what specifically will change and who stands to benefit.
The final version of the law introduces restrictions for platforms. Marketplaces will no longer be able to use aggressive discounts or reinvest profits into promotional campaigns without explicit consent from sellers. It mandates transparency in ranking algorithms and requires marketplaces to review seller complaints through pre-trial proceedings within 15 days, with immediate reversal of unfair sanctions.
The current version of the law abandons several concessions for platforms that allowed them to independently set discounts and apply opaque promotion algorithms. Instead, sellers will now be able to set minimum prices and block unwanted discounts. Product labeling is also mandatory, and marketplaces will now be required to verify it—otherwise products won't make it to the storefront.
Marketplaces have actively used discounts and profit reinvestment in promotional campaigns to expand market share. For instance, in February 2025, the Federal Antimonopoly Service indicatedthat Wildberries and Ozon practice automatic enrollment of products in promotions with discounts up to 50% without seller consent, triggering serious complaints from sellers and threats of sanctions from the regulator. Currently, marketplaces notify sellers several days before sales and give them the option to opt out, while discounts serve as a key tool for promoting both individual products and marketplaces overall. However, this requires sellers to "always be available" and monitor their products to prevent them from being included in unwanted discounts.
And the consequence of eliminating discounts is rising prices. According to various estimates, once the law takes effect, average prices for goods on platforms could increase substantially, which will negatively impact shoppers and small businesses by depriving them of the ability to compete with major market players.
In 2024, the share of online commerce in Russia grew to 16.2% of total retail sales, while the e-commerce market volume increased by 41%, reaching nearly 9 trillion rubles. According to Data Insight, in the non-food goods segment, the share of online sales reached 42%. And although Russian e-commerce growth overall is slowing, it remains stable, unlike traditional shopping. In the electronics segment alone, according to M.Video-Eldorado, online sales account for more than 60%. And here the players include retail chains developing their sales. The nuance is that with a different economic model, traditional stores cannot as aggressively reinvest profits into customer discounts, and consequently lose out to marketplaces—Wildberries, Ozon, and Yandex Market.
For example, Ozon's turnover for 2024 grew by 64%, reaching 2.8 trillion rubles, while its net loss was 59 billion rubles (which is precisely related to reinvestment). Meanwhile, the largest offline retailer of home appliances and electronics, M.Video-Eldorado, showed growth revenue by just 5% to 566 billion rubles, closing the year with a net loss of 20.1 billion rubles and a meager EBITDA margin of around 4–4.5%. But in M.Video's case, such anemic revenue growth can't be offset by any amount of reinvestment, given other expenses including store maintenance costs. This situation reflects the serious pressure marketplaces are putting on traditional retail. That's why retailers—who were around long before marketplaces—are keen to tie the hands of online platforms. Participating in debates around the platform economy law, these "old-timers" decided it was time to remind everyone who started their business in market stalls. After all, if discounts there decrease, some shoppers might potentially shift to online purchases at stores.
This is why traditional retail and the Association of Retail Trade Companies (AKORT) appealed to the Federal Antimonopoly Service (FAS) and the government, calling for restrictions on marketplaces and accusing them of dumping and market monopolization. FAS confirmed the dominance of Wildberries and Ozon (holding roughly 80% of the e-commerce market) in the marketplace sector, while AKORT advocated for banning aggressive discounts in the 30–50% range, calling this a threat to level playing conditions for offline retail.
Retailers also demanded transparency in partnership terms with marketplaces, arguing this would ensure fair competition and prevent price wars that drive small businesses into bankruptcy. But this raises a philosophical question: by curtailing discount opportunities (essentially removing one of their key advantages), isn't competition itself being restricted? It's quite possible that retail is simply going through another stage of transformation, much like stores and supermarkets once replaced the fairs and local markets of the 19th century.
Another important regulatory aspect is the strengthening of the product labeling system. The law mandates verification of labeling for goods sold through marketplaces. Platforms will be required to monitor whether products have proper labeling and prevent listings from appearing if they don't. The stated goal is combating counterfeits. However, experts and business representatives doubt the system's actual effectiveness. Moreover, mandatory labeling affects logistics and supply chain transparency, but the costs ultimately get passed on to consumers without guaranteeing full protection against fakes.
The adopted law will shift the balance of power in Russia's e-commerce market. Regulation was indeed needed—the only question was what kind. With this law, we've witnessed what political scientists would call a clash between revolution (marketplaces) and counter-revolution (traditional retail). And while the regulation aims to increase transparency and protect small business, there are risks of rising prices and declining marketplace competitiveness. And in the end, consumers will foot the bill.