The State Administration for Market Regulation (SAMR) has recently issued the Provisional Rules Against Improper Competitions on the Internet (literal translation of "網絡反不正當競爭暫行規定").
The Rules guided that efforts should be made to promote the Internet industry to maximise its innovation potential. In response to the new characteristics, trends and requirements of the development of the digital economy in China, the new rules will improve the standards for identifying and regulating various types of online anti-competitive behaviours. It will identify new forms of traditional unfair competition behaviours such as imitating confusion and false advertising in the online environment, and list new types of online unfair competition behaviours such as intentionally placing false orders and illegally acquiring data.
At the same time, the Rules will also regulate several focused issues of online consumption in the Mainland, which infringe on consumers‘ rights and interests, such as credit and comment manipulation, rebates for giving good reviews, and influencing users’ choices. The new rules will urge platforms to strengthen the regulation and management of competitive behaviours on their platforms, as well as regulate the abuse of data and algorithms to gain a competitive advantage.
In view of the characteristics of network unfair competition behaviour, such as wide radiation, cross-platform and cross-region, special provisions have been made for the supervision and inspection procedures. The Rules will come into force in September.
