2025 China’s Anti-Unfair Competition Law
The Anti-Unfair Competition Law of the People’s Republic of China (AUCL), first enacted in 1993. On June 27, 2025, the 16th Session of the Standing Committee of the 14th National People’s Congress voted to adopt the 2025 Newly Revised AUCL, which will take effect on October 15. The law prohibits various unfair competition practices that disrupt market fairness and consumer interests.
In legislation, there is a big difference between the words “revision” and “amendment”. Although both of them involve changes to existing laws, there are significant differences between them in terms of the scope, extent, procedure, and final expression of the changes:
- The law of an “Amendment” is usually a partial or minor modification or addition to the existing law. It usually does not change the basic framework, principles, and main contents of the law.
- The law of a “Revision” is manifested as a comprehensive, significant, and structural modification of the existing law, which sometimes even requires the updating of the basic principles, main system, overall framework, and a large number of provisions of the law.
The current round of revisions took nearly three years from the draft for public comments to the final deliberation and adoption. It addresses critical challenges in maintaining competitive order in the digital economy era. Building upon the 2017 and 2019 amendments, it introduces groundbreaking provisions in key areas such as platform governance, data rights, and commercial bribery.
This article provides an in-depth analysis of the revisions from legal applicability and compliance perspectives, incorporating the latest enforcement cases.
Interpretation of Key Revisions
Platform Economy Governance: Prohibiting “Cutthroat” Competition & Strengthening Platform Accountability
Ban on Forced Below-Cost Sales —(Article 14)
The Amended Law explicitly prohibits platform operators from compelling or coercing merchants to sell goods below cost. This directly targets long-standing predatory practices such as “exclusive dealing” (“pick one of two”) and “lowest-price mandates,” which have squeezed profit margins for small and medium-sized businesses.
Platforms’ Active Management Obligations –(Article 17)
Platforms are now required to establish mechanisms for reporting and addressing unfair competition, take necessary actions against violations by merchants, retain records, and report to regulators.
Enhanced Data Rights Protection: Explicit Prohibition of Unlawful Data Acquisition
New Prohibition on Data-Related Unfair Competition –(Article 13)
The Amended Law bans obtaining or using others’ data through fraud, coercion, cyber intrusion, or similar means, formally integrating data rights into the anti-unfair competition framework.
Refined Regulation of Confusion Practices: Expanded Internet-Specific Standards
Explicit Ban on Keyword Confusion –(Article 7)
The Amended Law now classifies “unauthorized use of others’ product/business names as search keywords” as a confusing practice, resolving prior judicial inconsistencies in assessing implicit confusion.
Stricter Penalties for Commercial Bribery: Dual Liability for Bribe-Givers & Takers
Expanded Liability Scope –(Article 8)
Beyond penalizing bribe-giving, the Amended Law now explicitly prohibits bribe-taking, imposing dual fines on entities and individuals:
- For entities: Up to CNY 5M
- For individuals: Up to CNY 1M
Revised Legal Risk
| High-Risk Behaviors | Key Legal Changes & Risk Highlights | Corporate Compliance Priority |
| Commercial Bribery | -Dual penalties established for both bribe-givers and takers -Fines increased to ¥5M for entities, up to ¥1M for responsible individuals -First explicit liability for bribe-taking entities/individuals | Extremely High |
| Forcing Below-Cost Sales on Platform Merchants | -New prohibition clause (Article 14) -Platforms, as rule-makers now directly regulated | High (Platform Companies) |
| Unlawful Data Acquisition/Use | -Explicitly banned for the first time (Article 13) -Technology providers may bear joint liability -Penalties aligned with obstructing network services, with increased severity | High (Data-Driven Enterprises) |
| Large Enterprises Delaying Payments to SMEs | -New prohibitive rule (Article 15) -Targets critical supply chain pain points, with strong enforcement expected | High (Large Enterprises) |
Conclusion
The enactment of the newly revised AUCL not only signifies intensified regulatory oversight but also marks a pivotal step toward higher-standard market normalization. The State Administration for Market Regulation (SAMR) has explicitly stated that after the law takes effect, enforcement will prioritize cracking down on practices such as online fake transactions, data infringement, platforms coercing below-cost sales, and large enterprises delaying payments to SMEs, with high-profile cases to be publicly exposed.
For enterprises, proactive compliance and timely operational adjustments are not merely essential measures to avoid hefty penalties and reputational damage—they represent a strategic cornerstone for building long-term commercial credibility, earning partner trust, and enhancing sustainable competitiveness. The law has now clearly delineated the boundaries of the playing field. Enterprises that act early and embed robust compliance will gain both a competitive edge and respect in this new regulatory landscape.
For more information, stay tuned for the enforcement, and feel free to contact us.
