Focus on preventing and controlling "involution" competition! Anti-Unfair Competition Law officially landed

2026-03-30 13:48:22

The bill makes it clear that all kinds of anti-unfair competition measures will be used comprehensively to prevent and control "involution" competition in key industries and fields such as platform economy, photovoltaic, lithium batteries and new energy vehicles.

Recently, the General Administration of Market Supervision issued a circular on further implementing the Anti-Unfair Competition Law of the People's Republic of China.

The bill clearly States that all kinds of anti-unfair competition measures will be used comprehensively. Efforts should be made to prevent and control the platform economy, " clearly and continuously increase the common problems such as counterfeiting and confusion, false publicity, infringement of trade secrets, improper sales with prizes, etc. The crackdown on high-incidence unfair competition will promote the formation of a fair competitive market environment.

We should clearly focus on supporting trade associations, chambers of commerce and self-discipline mechanisms to give full play to the functions of industry self-discipline and professional services, formulate industry competition norms and guidelines, and guide operators in the industry to resist unfair competition. Notice

of the State Administration of

Market Supervision on Further Implementing

the Law of the People's Republic of China on Countering Unfair Competition The market supervision bureaus (departments) of all provinces, autonomous regions, municipalities directly under the Central Government and Sinkiang Production and Construction Corps, On June 27, 2025, the 16th Session of the Standing Committee of the

14th National People's Congress voted to adopt the newly revised Anti-Unfair Competition Law of the People's Republic of China (hereinafter referred to as the Anti-Unfair Competition Law), which will come into effect on October 15, 2025. In order to further implement the Anti-Unfair Competition Law, the relevant matters are hereby notified as follows.

1. Fully Understanding the Importance of Implementing the Anti-Unfair Competition Law

The Party Central Committee and the State Council attach great importance to strengthening the work of anti-unfair competition. General Secretary Xi Jinping has made important instructions and instructions on many occasions, pointing out that anti-unfair competition is the inherent requirement of improving the socialist market economic system and promoting high-quality development. The Outline of the Fifteenth Five-Year Plan for National Economic and Social Development of the People's Republic of China puts forward the idea of "strengthening anti-monopoly and anti-unfair competition law enforcement and justice". Implementing the newly revised Anti-Unfair Competition Law is an important guarantee to ensure the full implementation and effective implementation of the Party's relevant line, principles, policies and decision-making arrangements from the institutional and legal point of view. It is of great significance to further improve the market competition rules and speed up the construction of an efficient, standardized, fair and fully open national unified market. We should have a deep understanding of the far-reaching significance of the Anti-Unfair Competition Law in regulating market order, optimizing business environment and promoting high-quality development, accurately understand the spirit and core content of the revision, and earnestly do a good job in learning, publicizing and implementing it.

2. Accurately grasp the key points

of implementing the Anti-Unfair Competition Law (1) Improve the working mechanism of anti-unfair competition. Anti-unfair competition work should adhere to the leadership of the Communist Party of China. In accordance with the requirements of building a high-standard market system, we should actively report to the people's governments at all levels, take the implementation of the Anti-Unfair Competition Law as an important starting point to promote the construction of a unified national market, promote the improvement of the coordination mechanism of local anti-unfair competition work, eliminate the blockages that hinder the construction of a unified national market, and comprehensively implement the fair competition review system. Strengthen cooperation with relevant departments and take various measures to prevent and stop unfair competition.

(2) Comprehensive rectification of "involution" competition. Comprehensive use of various anti-unfair competition measures, efforts to prevent and control the platform economy, photovoltaic, lithium batteries, new energy vehicles and other key industries and areas of "involution" competition. Accurate identification and investigation of platform enterprises according to law without justified reasons, using search ranking, business evaluation, algorithm control, flow restriction, off-shelf goods, increased costs, arrears, suspension of transactions, internal punishment and other means, or in subsidies, preferences, red envelopes, discounts, "full reduction", "buy gifts", promotions and other activities. Force or disguise the operators in the platform to sell goods at a price lower than cost, thus disrupting the order of market competition. When determining the violation of a case, we should take into account the nature of the subject matter of the transaction, the scale and type of production, the market and sales situation, production efficiency and technology, the quality of goods or services and other factors. Compacting the responsibilities and obligations of platform operators in dealing with unfair competition, urging the platform to clarify the rules of fair competition within the platform, establishing a special working mechanism, accepting complaints, handling disputes, taking necessary measures to deal with unfair competition in a timely manner, keeping relevant records and reporting to law enforcement agencies. To prevent the platform operators from interfering with the independent management rights of the operators in the platform through improper audit management.

(3) Prevent and control large enterprises and other operators from defaulting on the accounts of small and medium-sized enterprises. Construct a multi-dimensional coordination mechanism to govern the arrears of large enterprises and other operators to small and medium-sized enterprises. It is necessary to make a comprehensive judgment on whether large enterprises and other operators have a dominant position in the light of the status of the trading parties in the industry, trading habits, the impact on small and medium-sized enterprises and the overall market order and other factors. To accurately identify illegal acts, the main body should be large enterprises and other operators, which must have the specific performance of abusing the dominant position, and require small and medium-sized enterprises to accept obviously unreasonable trading conditions and form the fact of arrears. If it is indeed illegal, the market supervision department at or above the provincial level may require the relevant enterprises to rectify; if they refuse to rectify, they shall be dealt with in accordance with the law. According to the circumstances of the case, the market supervision department at a lower level may be entrusted with verification and investigation.

(4) Strengthen the supervision of unfair competition on the Internet. We should coordinate the relationship between vitality and order, improve the rules of network competition, and strive to improve the normal supervision level of network unfair competition. We should make good use of the special provisions prohibiting the infringement of data rights and interests and the rules for the protection of trade secrets, accurately identify unfair competition in data, balance the relationship between data protection and data utilization, strengthen the protection of emerging industries such as artificial intelligence, effectively protect the legitimate rights and interests of all participants in data elements, and maintain the order of competition in the data market. Timely response to all kinds of new types of network unfair competition, effective regulation of the use of data and algorithms, technology, platform rules and other unfair competition. Accurately grasp the legal composition and practical characteristics of unfair competition on the Internet, continuously strengthen the screening and supervision of various disguised manifestations such as traffic hijacking, malicious interference, malicious incompatibility, abuse of platform rules to implement false transactions, false evaluation or malicious returns, and further strengthen the maintenance of the market order of the digital economy.

(Five) stop typical acts of unfair competition. To adapt to high-quality development and

(Six) strengthen the protection of trade secrets. Fully understand the importance of strengthening the protection of trade secrets under the new situation, and take strengthening the protection of trade secrets as an important measure to optimize the business environment and promote high-quality development. We will improve the system of trade secret protection rules and explore the introduction of trade secret protection regulations and management norms according to local conditions. Promote the construction of trade secret protection service sites, equip professional institutions and professionals, and constantly improve the service system. Actively guide key industries and enterprises to strengthen compliance management, enhance self-protection awareness and ability, and effectively prevent the risk of leakage. We will accelerate the introduction of trade secret protection standards, promote the certification of the national trade secret protection management system, and enhance the standardization, standardization and internationalization of trade secret protection in Chinese enterprises.

(7) Explore extraterritorial law enforcement against unfair competition. Explore and promote the extraterritorial application of China's anti-unfair competition laws and rules, and resolutely crack down on such unfair competition acts as false publicity, unfair competition on the Internet, commercial defamation and infringement of trade secrets, which disrupt the competition order in the domestic market and damage the legitimate rights and interests of domestic operators or consumers. Safeguarding China's industrial chain

3. Actively promote the effective implementation

of the Anti-Unfair Competition Law (8) Improve the system of rules and regulations. Construct an open, transparent and predictable legal system against unfair competition, and improve the top-level design of anti-unfair competition. The high-level international economic and trade rules should be effectively linked up in terms of government regulation, regulatory transparency and enterprise compliance, so as to enhance the voice of the open anti-unfair competition system. Summarize the experience of supervision practice in time, and promote the study and formulation of the Regulations on Prohibiting Unfair Competition on the Internet. Systematically promote the formulation and revision of regulations to regulate counterfeiting and confusion and prohibit commercial bribery, so as to provide normative guidance for administrative law enforcement. Promote the research and publication of market price and competition behavior evaluation reports in relevant industries, guide healthy competition, and gradually build a multi-level anti-unfair competition policy toolbox. We will promote the improvement of the mechanism for closely linking administrative law enforcement, civil relief and criminal justice, strengthen the transfer of case clues and coordinated investigation, and explore the formation of a working pattern of information sharing and law enforcement linkage.

(9) Improving the efficiency of supervision and law enforcement. We will continue to strengthen the crackdown on the "first case" of unfair competition and the rectification of "similar cases" in the fields of platform economy, people's livelihood security and technological innovation, strengthen warning, prevention and guidance, prevent systemic risks, and avoid pushing up the cost of follow-up governance. Improve the ability to use the rule of law thinking and the rule of law to promote development and solve difficult problems, and enhance the ability of off-site supervision and penetrating supervision. Efforts should be made to enhance the ability of intelligent supervision, promote the automatic connection between the anti-unfair competition disposal information of key platforms and the administrative supervision information system, and strengthen the application of "three books and one letter" in the case of inadequate main responsibility and major public opinion risk events. We should reasonably grasp the intensity of punishment, unify the timeliness and effectiveness of supervision and law enforcement, coordinate the law and reason, accurately understand the provisions on canceling the lower limit of the amount of punishment for false publicity, accurately apply the provisions on lightening or not imposing administrative penalties, and reserve space for the innovation and creation of business entities and free competition.

(10) Strengthen the guarantee of law enforcement capacity. We will accelerate the establishment of a modern anti-unfair competition regulatory system that is compatible with the super-large-scale market and the mature and perfect market mechanism, and strive to build a high-quality, professional supervision and law enforcement team. We will promote the optimization and strengthening of anti-unfair competition law enforcement capabilities at all levels, focus on supporting the capacity-building of grass-roots supervision, form a functional system conducive to giving full play to the advantages of all levels in performing their duties, and intensify the investigation and handling of cross-regional cases. We will increase the support of third-party institutions such as auditing, accounting, electronic forensics, information technology testing and identification, and certification for the supervision and enforcement of new types of unfair competition.

(11) Strengthen guidance on competition compliance. By formulating and promulgating various guidelines and guidelines, we will strengthen administrative guidance and publicity training for operators to operate in compliance with the law, and promote enterprises to operate in compliance with the law consciously. Actively encourage and guide enterprises to establish and improve the competition compliance management system, strengthen the main responsibility of enterprise compliance, and constantly improve the ability of enterprise compliance management. We will strengthen research on national competition policies and laws, carry out information exchange on enterprise compliance, and support Chinese enterprises to meet the challenges of extraterritorial competition restrictions.

(12) Promoting the co-construction of competition order. Encourage, support and protect all kinds of social supervision over unfair competition, such as operator supervision, consumer supervision, industry organization supervision, news and public opinion supervision, and promote the formation of a competition supervision pattern of co-construction and co-governance. Focus on supporting industry associations, chambers of commerce and self-discipline mechanisms to play the role of industry self-discipline and professional services, formulate industry competition norms and guidelines, guide industry operators to resist unfair competition, coordinate and resolve disputes, provide legal advice and suggestions, and promote industry operators to jointly enhance the overall competitiveness of the industry through innovation and cooperation. We will support the discipline construction of competition law and accelerate the training of practical, foreign-related and technical anti-unfair competition legal personnel.

(Thirteen) create a fair competition atmosphere . Create a brand of fair competition publicity activities with wide social influence, carry out various forms and rich contents of law popularization publicity activities and competition advocacy work in the whole society, effectively improve the concept of fair competition and awareness of law-abiding rights protection in the whole society, strengthen respect for and advocate voluntary, equal, fair and honest business ethics, and abide by laws and regulations. Actively create a good social atmosphere and fair competition environment for knowing and abiding by the law and understanding the usage of the law. In light of the characteristics of regional economic development and the reality of supervision,

we should carefully organize and implement them to ensure that all work arrangements are in place and effective, comprehensively improve the level of implementation of the Anti-Unfair Competition Law, earnestly safeguard the order of fair competition market, promote the construction of a unified national market, and contribute to the realization of Chinese-style modernization.

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Correlation

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