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Mainland China issues antitrust compliance guidelines for internet platforms, listing risk examples such as 'lowest price across the web'.

AASTOCKS ·  Feb 13 16:16

According to reports by CCTV, in order to support and guide mainland internet platform operators in effectively preventing anti-monopoly compliance risks and promoting innovation and the healthy development of the platform economy, the State Administration for Market Regulation has issued the 'Anti-Monopoly Compliance Guidelines for Internet Platforms.'

These guidelines focus on four main types of monopoly risks: monopoly agreements, abuse of dominant market positions, concentration of business operators, and the abuse of administrative power to exclude or restrict competition. The guidelines set clear and explicit 'red lines' for platform operators.

The guidelines identify new types of monopoly risks across eight scenarios, including inter-platform algorithmic collusion, organizing or assisting platform-based operators in forming monopoly agreements, unfair high pricing by platforms, below-cost sales, blocking or shielding, 'either-or' behavior, 'lowest price on the web' clauses, and differential treatment by platforms. These provide actionable guidance for platform operators to strengthen anti-monopoly compliance management.

The guidelines require platform operators to adhere to four key principles—targeted, comprehensive, penetrative, and continuous—when conducting anti-monopoly compliance management. They must compete lawfully and operate in compliance, refraining from using data, algorithms, technological advantages, capital superiority, or platform rules to engage in monopolistic behaviors prohibited by the Anti-Monopoly Law.

Law enforcement practices indicate that internet platforms possess unique competitive characteristics and patterns. There are notable differences in the types, manifestations, and damages caused by monopolistic behaviors compared to traditional sectors. New forms and models within the platform economy continue to emerge, resulting in complex competitive behaviors. Platform operators express a strong need to identify monopoly risks and clarify behavioral boundaries. The issuance of these guidelines represents a further refinement of anti-monopoly compliance systems, helping address concerns from platform operators and supporting and guiding them in precisely identifying, assessing, and mitigating monopoly risks.

Internet platforms involve multiple stakeholders, including platform operators, operators within the platform, consumers, and employees. Platform operators can influence the competitive ecosystem through platform rules, data, algorithms, and technological means. If platform operators engage in exclusionary or restrictive competitive behaviors, it will harm the interests of multiple parties involved.

The translation is provided by third-party software.


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