SOURCE / COMPANIES
Top market regulator enacts rule to oversee unfair competition by platform companies
Published: Aug 17, 2021 12:42 PM
Photo: CFP

Photo: CFP


 
The State Administration for Market Regulation (SAMR), China’s top market regulator,  issued draft regulations on Tuesday targeting unfair competitions in the internet sector, soliciting public comment on the new rules, in order to better manage the country’s platform businesses, while protect consumer interests.

The regulation focuses on restricting traditional approaches by companies to engage in unfair competition activities. The regulation will also allow third parties of supervision institutes and observers to join market investigation so as to enhance regulation efficiency and accuracy, said SAMR.

The regulation includes bans on using new technological methods to conduct illicit competitions and stifle market rivals. It rules that platform operators will not be allowed to use big data, algorithms and other methods to affect consumer’s choice, or try to divert internet traffic from rivals. 

Internet business operators are also banned to use digital means to unfairly influence consumers’ decisions and reduce communication between consumers and other internet business operators, the draft regulation said. 

SAMR said that internet platform operators that violate the regulation will be penalized.

Global Times

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