New Anti-unfair Competition Law: Brief Review and Comparison

anti unfair competition law

by Cathy Wang, Fredrick Xie

On June 26th, the National People’s Congress of the People’s Republic of China released the new edition of Anti-unfair Competition Law, which will be effective starting from Oct 15th, 2025. This would be the fourth revision of the AUCL since its first publication on 1993, and also the finalization of three draft revisions of the AUCL since 2022.

In general, we can see AUCL 2025 is more of making “fine-tuning” instead of trying to make a big change. Indeed, we can see Chinese authority believes the framework and main systems of the current AUCL are feasible, while when facing development of new technologies and new business models, it is trying to better regulate and prevent unfair competition activity by using technologies (algorithms, platform rules and big data), and in the meantime trying to improve those already existing but long-standing unfair competition activities (commercial bribery, etc.).

Invoking Fair Competition Review System

Art. 3 of AUCL 2025 added that “The state shall establish and improve the fair competition review system, strengthen the works relating to fair competition review in accordance with the law, and ensure that all types of business operators use production factors on an equal basis in accordance with the law and participate in market competition fairly.”

Such indication seemed to be formalizing the Regulation on the Review of Fair Competition (August 2024) and Measures for the Implementation of the Regulations on Fair Competition Review (April 2025), where majority of the content is requesting the law makers, policy makers shall conduct a review relating to fair competition.

Expanding and More Detailed Regulation relating to Confusion Activities

Article 7 of the 2025 AUCL significantly expands the range of protectable identifiers (to include general "names," social media, and apps), reduces interpretative ambiguity for enforcement, and explicitly defines and prohibits new digital-era confusion tactics like unauthorized trademark use in shop registrations and keyword squatting, while also introducing secondary liability for operators aiding such confusion.

  1. Art. 7.2 AUCL 2025 specified that “names” having certain influence shall be protected. Such indication expanded the scope of protection compared to Art. 6.2 AUCL 2019, where it only indicated that “company names” and “the names of social organizations” are protectable.
     

  2. Art. 7.3 AUCL 2025 added that the names of social media accounts, names and icons of the APP are protectable. Our understanding here would be it is trying to leave less space of interpretation for courts / authorities / platforms, so that they have less excuses not to take action. 

  3. Art. 7.4 AUCL 2025 specifically prohibits using someone’s registered or unregistered well-known trademark as a trade name during company registration, setting another entity's business identifiers (product name, company name, registered trademark, unregistered well-known trademark) as search keywords. Business operators are also explicitly forbidden from assisting others in committing these specified confusion acts.

Fine-tuning in Commercial Bribery

The revision reflects a tougher stance against commercial bribery, emphasizing accountability for individuals, having an individual directly enforceable by market supervision authorities.

  1. Art. 8 explicitly ban on Bribe Acceptance. New clause prohibits units/individuals (e.g., businesses, employees, third parties) from accepting bribes, closing a loophole in prior laws that focused only on bribe-giving.

  2. Art. 24 set forth a penalty relating to commercial briberies imposed directly to the individuals. Penalties now apply directly to individuals (not just organizations), including leaders and bribe recipients.

More Detailed Digital Competition Governance

Article 13 AUCL 2025 retains original prohibitions against cyber-sabotage tactics likeforced redirects, service disruption, and malicious incompatibility but critically expands coverage for modern digital threats, specifying methods using data / algorithms / platform rules shall also be subjected to governance. 

In the meantime, it also explicitly banned obtaining/using competitors’ data through fraud, coercion, or technical circumvention (e.g., scraping paywalled content), provided such acts infringe rights and disrupt market order.

Platform rules manipulationis now directly targeted: operators cannot abuse rules to orchestrate false transactions, fake reviews, malicious returns, or instruct third parties to execute these schemes. This closes loopholes allowing synthetic attacks on competitor’s reputation or operations within digital ecosystems.

Enhanced Platform Accountability: Combating Predatory Pricing & Strengthening Governance

AUCL 2025 imposes rigorous obligations on platform operators to ensure fair competition. Article 14 explicitly prohibits platforms from forcing, overtly or covertly, in-platform sellers to price goods below cost, a practice that distorts market competition.

To operate this, Article 21 mandates platforms to: embed fair competition rules in their service agreements; establish reporting / dispute mechanisms for unfair practices; act promptly against violators (including retention records and reporting to authorities).

This triad of provisions creates aself-policing framework, compelling platforms to proactively deter anti-competitive behavior while facing severe penalties for non-compliance. How the platform would act in accordance with this article, how authority would enforce a violation done by the platform, we hope to see practical cases coming out soon.

Protecting SMEs from Abusive Contractual Practices

AUCL 2025 directly addresses power imbalances between large enterprises and small and medium-sized enterprises (SMEs). Article 15 prohibits dominant players from abusing advantages in capital, technology, or market influence to force SMEs into accepting unfair terms, including exploitative payment conditions, one-sided liability clauses, or deliberate delays in settling invoices for goods or services.

Enforcement is operationalized through Article 31, which establishes a tiered provincial-level enforcement regime: regulators first order violators to rectify misconduct within a set deadline; failure to comply will trigger a substantial fine. This "correct-then-penalize" approach incentivizes timely remediation while imposing meaningful consequences for systemic abuse.

How provincial authorities define "obviously unreasonable terms" in cross-industry contexts, and whether SMEs facing dependency relationships will risk reporting violations, will determine the efficacy of these regulations.

Extraterritorial Reach: Safeguarding Domestic Market from Unfair Competition Activity Oversea

Article 40 AUCL 2025 asserts the law’s jurisdiction over unfair competition acts occurring outside China that disrupt domestic market order or harm Chinese businesses/consumers. This critical expansion empowers regulators to address foreign entities manipulating markets, hijacking domestic brands via cross-border platforms, or targeting Chinese consumers with deceptive practices - even if orchestrated from abroad.

Our feeling here is that this clause is not only targeting non-Chinese entities, it is also designed to target those mega Chinese companies that is going aboard, but at the price of hurting SMEs. 

With this clause, it is clear that the law maker is trying to plug the loophole for some companies trying to set up their business outside of China so as to avoid jurisdiction.

To summarize, China's updated AUCL isn't about rewriting the rules, it's more about making them work better for today’s world. The changes specifically target new tricks in the digital age while strengthening protections for smaller businesses. From online impersonation and fake reviews to big companies bullying suppliers or dodging responsibility by moving operations overseas, the law aims to close these loopholes. 

While real-world enforcement remains to be seen, the message is clear: China is targeting mega companies, no matter domestic or abroad, and trying to protect small and medium companies that is playing fairly in the market.

Comparison Anti-unfair Competition Law 2019 vs 2025

Anti-unfair   Competition Law (2019)

Anti-unfair Competition Law   (2025)

Chapter 1 General Principles

Chapter 1 General Principles

Article   1 This Law is formulated for the purposes of promoting healthy development of   the socialist market economy, encouraging and protecting fair competition,   stopping unfair competition, and protecting the legitimate rights and   interests of business operators and consumers.

Article   1 This Law is formulated for the purposes of promoting healthy development of   the socialist market economy, encouraging and protecting fair competition, preventing andstopping unfair   competition, and protecting the legitimate rights and interests of business   operators and consumers. 

Article   2 Business operators shall adhere to the principles of voluntary   participation, equality, fairness and integrity in their production and   business operation, and comply with laws and business ethics.

Unfair   competition referred to in this Law shall mean the behavior of an operator   who violates the provisions of this Law in its production and business   operation, disrupts market competition order, or harms the legitimate rights   and interests of other business operators or consumers.

Business   operators referred to in this Law shall mean natural persons, legal persons   and non-legal persons engaging in manufacturing and business operation of   goods, or provision of services (the goods referred to hereinafter include   services).

Article   2 Business operators shall adhere to the principles of voluntary   participation, equality, fairness and integrity in their production and   business operation,  comply with laws   and business ethics and participate in competition   fairly.

Unfair   competition referred to in this Law shall mean the behavior of an operator   who violates the provisions of this Law in its production and business   operation, disrupts market competition order, or harms the legitimate rights   and interests of other business operators or consumers.

Business   operators referred to in this Law shall mean natural persons, legal persons   and non-legal persons engaging in manufacturing and business operation of   goods, or provision of services (the goods referred to hereinafter include   services).

Article 3 The work against unfair competition adheres to the leadership   of the Communist Party of China.

The state improves and perfects the rules and systems against unfair   competition, strengthens law enforcement and judicial proceedings against   unfair competition, maintains the order of market competition, and improves a   unified, open, competitive and orderly market system.

The state shall establish and improve the fair competition review   system, strengthen the fair competition review work in accordance with the   law, and ensure that all types of business operators use production factors   on an equal basis in accordance with the law and participate in market   competition fairly.

Article   3 All levels of People's Government shall adopt measures to prevent unfair   competition and create good environment and conditions for fair   competition. 

The   State Council establishes an anti-unfair competition work coordination   mechanism, study and decide on major anti-unfair   competition policies, coordinate and handle major issues for   protecting market competition order.

Article   4 All levels of People's Government shall adopt measures to prevent and stop unfair competition and create   good environment and conditions for fair competition. 

The   State Council establishes and improves   anti-unfair competition work coordination mechanism, coordinate and handle   major issues for protecting market competition order.

Article   4 The administration for industry and commerce of People's Governments of   county level and above shall investigate and deal with unfair competition;   where the laws and administrative regulations stipulate that other   authorities shall investigate and handle, such provisions shall   prevail. 

Article   5 The administration for market supervision   of county level and above shall supervise and   inspect unfair competition; where the laws and administrative   regulations stipulate that other authorities shall supervise   and inspect, such provisions shall prevail. 

Article   5 The State encourages, supports and protects organizations and individuals   carrying out public supervision for unfair competition. State agencies   and their staff shall not support or cover up unfair competition.

Industry   organizations shall strengthen industry self-governance, guide and   standardize lawful competition among their members, and maintain market   competition order.

Article   6 The State encourages, supports and protects organizations and individuals   carrying out public supervision for unfair competition. State agencies   and their staff shall not support or cover up unfair competition.

Industry   organizations shall strengthen industry self-governance, guide and regulate   business operators in the industry to   compete in accordance with the law, and maintain market competition order.

Chapter   2 Unfair Competition

Chapter   2 Unfair Competition

Article   6 Business operators shall not commit the following acts to mislead others to   misidentify their goods as others' goods or to associate their goods with   others: 

(1)   unauthorised use of labels which are identical or similar to the description,   packaging, decoration etc. of other's goods that are influential;

(2)   unauthorised use of other's influential enterprise name (including   abbreviation, brand name etc.), social organization name (including   abbreviation etc.) and name (including pen name, stage name, translated name   etc.);

(3)   unauthorised use of main part of other's domain name, website name, web page   etc. that are influential; or

(4)   any other acts which can mislead others to misidentify their goods as others'   goods or to associate their goods with others.

Article   7 Business operators shall not commit the following acts to mislead others to   misidentify their goods as others' goods or to associate their goods with   others: 

(1)   unauthorised use of labels which are identical or similar to the description,   packaging, decoration etc. of other's goods that are influential;

(2)   unauthorised use of other's influential names (including abbreviation, brand   name etc.), social organization name (including abbreviation etc.) and name   (including pen name, stage name, online name, translated   name etc.);

(3)   unauthorised use of main part of other's domain name, website name, web page,  new media account name, names or icons of APPs, etc.   that are influential; or

(4)   any other acts which can mislead others to misidentify their goods as others'   goods or to associate their goods with others.

Using another person's registered trademark or unregistered well-known   trademark as the trade name of an enterprise without authorization, or   setting another person's product name, enterprise name (including   abbreviations, trade names, etc.), registered trademark, unregistered   well-known trademark, etc. as search keywords, thereby misleading people into   believing that they are another person's products or have a specific   connection with others, shall be regarded as the confusion act as prescribed   in the preceding paragraph.

Business operators shall not assist others in committing confusing   acts.

Article   7 Business operators shall not use monies and assets or other means to bribe   the following organizations or individuals so as to seek transaction   opportunities or competitive advantage: 

(1)   staff of a transaction counterparty;

(2) organizations   or individuals entrusted by a transaction counterparty to handle the relevant   matters; or

(3) organizations   or individuals who make use of their official powers or influence to affect a   transaction.

Business   operators may, in their transaction activities, explicitly give discount to a   transaction counterparty, or pay commission to a middleman. When giving   discount to a transaction counterparty or paying commission to a middleman,   the business operator shall record the discount or commission in its accounts   truthfully. Business operators who receive discount or commission shall also   record the discount or commission in their accounts truthfully.

Bribery   committed by a staff member of a business operator shall be deemed as bribery   committed by the business operator, except where the business operator has   evidence to prove that the conduct of the said staff member has nothing to do   with seeking transaction opportunities or competitive advantage for business   operator.

Article   8 Business operators shall not give monies   and assets or use other means to bribe the following organizations or   individuals so as to seek transaction opportunities or competitive advantage: 

(1)   staff of a transaction counterparty;

(2) organizations   or individuals entrusted by a transaction counterparty to handle the relevant   matters; or

(3) organizations   or individuals who make use of their official powers or influence to affect a   transaction.

The units and individuals as prescribed in the provisions of the   preceding paragraph shall not accept bribes.

Business   operators may, in their transaction activities, explicitly give discount to a   transaction counterparty, or pay commission to a middleman. When giving   discount to a transaction counterparty or paying commission to a middleman,   the business operator shall record the discount or commission in its accounts   truthfully. Business operators who receive discount or commission shall also   record the discount or commission in their accounts truthfully.

Bribery   committed by a staff member of a business operator shall be deemed as bribery   committed by the business operator, except where the business operator has   evidence to prove that the conduct of the said staff member has nothing to do   with seeking transaction opportunities or competitive advantage for business   operator.

Article   8 Business operators shall not make false or misleading commercial promotion   for the performance, functions, quality, sales, user evaluation, accolades   etc. so as to defraud or mislead consumers. Business operators shall not   organise false transactions etc. to help other business operators to carry   out false or misleading commercial promotion.

Article   9 Business operators shall not make false or misleading commercial promotion   for the performance, functions, quality, sales, user evaluation, accolades   etc. so as to defraud or mislead consumers and   other business operators. Business operators shall not organise   false transactions, fake reviews etc. to   help other business operators to carry out false or misleading commercial   promotion.

Article   9 Business operators shall not commit the following infringement of   commercial secrets:

(1)   obtain the commercial secrets of a rights holder through theft,

bribery,   fraud, coercion, hacking or other improper means;

(2)   disclose, use or allow others to use the commercial secrets of a rights   holder obtained through the aforesaid means;

(3)   violate confidentiality obligation or violate a rights holder's requirements   on keeping confidentiality of commercial secrets, and disclose, use or allow   others to use such commercial secrets they obtained; and

(4)   instigate, induce or assist others to violate confidentiality obligation or   to violate a rights holder's requirements on keeping confidentiality of   commercial secrets, so as to disclose, use or allow others to use the commercial   secrets of the rights holder.

Natural   persons, legal persons and non-legal persons other than business operators   committing any of the illegal acts stipulated in the preceding paragraph   shall be deemed to have infringed upon commercial secrets.

Where   a third party is knowingly aware or should be aware that an employee,   ex-employee of a rights holder of commercial secrets, or any other organization   or individual, has committed any of the illegal acts stipulated in the first   paragraph of this Article but still obtains, discloses, uses or allows others   to use such commercial secrets, this shall be deemed to have infringed upon   commercial secrets.

Commercial   secrets referred to in this Law shall mean commercial information such as   technical information and business information, which is not known to the   public and has commercial value and for which the rights holder has adopted   the corresponding confidentiality measures.

Article   10 Business operators shall not commit the following infringement of   commercial secrets:

(1)   obtain the commercial secrets of a rights holder through theft,

bribery,   fraud, coercion, hacking or other improper means;

(2)   disclose, use or allow others to use the commercial secrets of a rights   holder obtained through the aforesaid means;

(3)   violate confidentiality obligation or violate a rights holder's requirements   on keeping confidentiality of commercial secrets, and disclose, use or allow   others to use such commercial secrets they obtained; and

(4)   instigate, induce or assist others to violate confidentiality obligation or   to violate a rights holder's requirements on keeping confidentiality of   commercial secrets, so as to disclose, use or allow others to use the   commercial secrets of the rights holder.

Natural   persons, legal persons and non-legal persons other than business operators   committing any of the illegal acts stipulated in the preceding paragraph   shall be deemed to have infringed upon commercial secrets.

Where   a third party is knowingly aware or should be aware that an employee,   ex-employee of a rights holder of commercial secrets, or any other organization   or individual, has committed any of the illegal acts stipulated in the first   paragraph of this Article but still obtains, discloses, uses or allows others   to use such commercial secrets, this shall be deemed to have infringed upon   commercial secrets.

Commercial   secrets referred to in this Law shall mean commercial information such as   technical information and business information, which is not known to the   public and has commercial value and for which the rights holder has adopted   the corresponding confidentiality measures.

Article   10 Business operators conducting prize-giving sales shall not have the   following circumstances: (1) the information on types of prizes, redemption   criteria, prize amount or prize items etc. are unclear, thus affecting prize   redemption;

(2)   conducting prize-giving sales in a fraudulent way that falsely claims to have   prizes or deliberately gives prizes to designated persons;

(3)   the highest prize of a lucky draw in prize-giving sales exceeds RMB 50,000.

Article   11 Business operators conducting prize-giving sales shall not have the   following circumstances: 

(1)   the information on types of prizes, redemption criteria, prize amount or   prize items etc. are unclear, thus affecting prize redemption;

(2) After the start of the   prize sales activity, without justifiable reasons, the types of prizes set,   the conditions for redemption, the amount of the prize money or the prizes   and other prize sales information are changed;

(3)  conducting   prize-giving sales in a fraudulent way etc.   that falsely claims to have prizes or deliberately gives prizes to designated   persons;

(4)  the   highest prize of a lucky draw in prize-giving sales exceeds RMB 50,000.

Article   11 Business operators shall not fabricate or disseminate false information or   misleading information to harm the business goodwill, product reputation of   their competitors. 

Article   12 Business operators shall not fabricate, disseminate or instruct others to fabricate or disseminate false   information or misleading information to harm the business goodwill, product   reputation of other business operators. 

Article   12 Business operators making use of cyber network for their production and   business activities shall comply with the provisions of this Law. 

A   business operator shall not make use of technical means to commit the   following acts, through influencing users' choice or any other method, to   hinder and disrupt normal operation of the cyber products or services provided   legitimately by other business operators:

(1)   without the consent of other business operators, insert hyperlink or force   redirects in the cyber products or services provided legitimately by them;

(2)   mislead, defraud or force users to amend, close or uninstall cyber products   or services provided legitimately by other business operators;

(3)   maliciously implement incompatibility with cyber products or services   provided legitimately by other business operators; or

(4)   commit any other acts which hinder or disrupt cyber products or services   provided legitimately by other business operators.

Article   13 Business operators making use of cyber network for their production and   business activities shall comply with the provisions of this Law. 

A   business operator shall not make use of statistics   and algorithm, technical means, platform   rules etc.  to commit the   following acts, through influencing users' choice or any other method, to   hinder and disrupt normal operation of the cyber products or services   provided legitimately by other business operators:

(1)   without the consent of other business operators, insert hyperlink or force   redirects in the cyber products or services provided legitimately by them;

(2)   mislead, defraud or force users to amend, close or uninstall cyber products   or services provided legitimately by other business operators;

(3)   maliciously implement incompatibility with cyber products or services   provided legitimately by other business operators; or

(4)   commit any other acts which hinder or disrupt cyber products or services   provided legitimately by other business operators.

Business operators shall not obtain or use data lawfully held by other   business operators through improper means such as fraud, coercion, evasion or   disruption of technical management measures, thereby infringing upon the   legitimate rights and interests of other business operators and disrupting   the order of market competition.

Business operators shall not abuse the platform rules to directly or instruct   others to carry out false transactions, false evaluations or malicious   returns against other business operators, thereby infringing upon the   legitimate rights and interests of other business operators and disrupting   the market competition order.


 

Article   14 Platform operators shall not force or covertly   force operators within the platform to sell goods at prices lower than cost   in accordance with their pricing rules, thereby disrupting the order of   market competition.

Article   15 Large enterprises and other business operators   must not abuse their advantageous positions in terms of capital, technology,   transaction channels, industry influence, etc., to require small and   medium-sized enterprises to accept obviously unreasonable transaction terms such   as payment terms, methods, conditions and liability for breach of contract,   and to delay the payment of goods, projects, services, etc. to small and   medium-sized enterprises.

Chapter   3 Investigation into Alleged Unfair Competition

Chapter   3 Investigation into Alleged Unfair Competition

Article   13 The regulatory authorities may adopt the following measures to investigate   into alleged unfair competition: 

(1)   enter into the business premises where the alleged unfair competition is   carried out, to conduct inspection;

(2)   question the business operator under investigation, the stakeholders and   other relevant organizations, individuals, and request them to provide the   relevant explanation or provide other materials related to the activities   under investigation;

(3)   inspect or make copies of agreements, accounts books, invoices and receipts,   documents, records, business correspondence and other materials related to   the alleged unfair competition;

(4)   seize or confiscate monies and assets related to the alleged unfair   competition; and

(5)   enquire into the bank account(s) of the business operator allegedly engaging   in unfair competition.

For   adoption of the measures stipulated in the preceding paragraph, a written   report shall be submitted to the key person-in-charge of the regulatory   authorities and obtain approval. For adoption of measures stipulated in item   (4) and item (5) of the preceding paragraph, a written report shall be   submitted to the key person-in-charge of the regulatory authorities of the People's   Government of a municipality divided into districts and obtain approval.

In   the investigation of alleged unfair competition, the regulatory authorities   shall comply with the provisions of the Administrative Enforcement Law of the   People's Republic of China and other related laws and administrative   regulations, and promptly announce the investigation findings to the public.

Article   16 The regulatory authorities may adopt the following measures to investigate   into alleged unfair competition: 

(1)   enter into the business premises where the alleged unfair competition is   carried out, to conduct inspection;

(2)   question the business operator under investigation, the stakeholders and   other relevant organizations, individuals, and request them to provide the relevant   explanation or provide other materials related to the activities under   investigation;

(3)   inspect or make copies of agreements, accounts books, invoices and receipts,   documents, records, business correspondence and other materials related to   the alleged unfair competition;

(4)   seize or confiscate monies and assets related to the alleged unfair   competition; and

(5)   enquire into the bank account(s) of the business operator allegedly engaging   in unfair competition.

For   adoption of the measures stipulated in the preceding paragraph, a written   report shall be submitted to the key person-in-charge of the regulatory   authorities and obtain approval. For adoption of measures stipulated in item   (4) and item (5) of the preceding paragraph, a written report shall be   submitted to the key person-in-charge of the regulatory authorities of the   People's Government of a municipality divided into districts and obtain   approval.

In   the investigation of alleged unfair competition, the regulatory authorities   shall comply with the provisions of the Administrative Enforcement Law of the   People's Republic of China and other related laws and administrative   regulations, and promptly announce the investigation findings to the public in accordance with the law.

Article   14 When the regulatory authorities investigate into an alleged unfair   competition, the business operator under investigation and the stakeholders,   as well as other relevant organizations and individuals, shall provide the   relevant materials or information truthfully.

Article   17 When the regulatory authorities investigate into an alleged unfair   competition, the business operator under investigation and the stakeholders,   as well as other relevant organizations and individuals, shall provide the   relevant materials or information truthfully. 

Article   23 Where a business operator violates the provisions of Article 11 of this   Law in harming the business goodwill or product reputation of its   competitors, the regulatory authorities shall order the business operator to   stop the illegal act, eliminate the impact, and pay a fine ranging from RMB 100,000   to RMB 500,000; in serious cases, a fine ranging from RMB 500,000 to RMB 3   million shall be imposed. 

Article   18 Where a business operator is suspected of   violating the provisions of this law, the regulatory authorities may have a talk with the relevant person in charge of   the operator, requiring them to explain the situation and propose improvement   measures.

Article   15 The regulatory authorities and their staff shall keep confidentiality of   commercial secrets which have come into their knowledge during the   investigation. 

Article   19 The regulatory authorities and their staff shall keep confidentiality of   commercial secrets, personal privacy and personal   information which have come into their knowledge during the   investigation. 

Article   16 Any organization or individual shall have the right to report an alleged   unfair competition to the regulatory authorities; the regulatory authorities   shall, upon receipt of a report, promptly handle pursuant to the law. 

The   regulatory authorities shall announce the hotline, mail address or email   address for acceptance of reports from the public and keep confidentiality   for whistleblowers. Where a whistleblower makes a report in real name and   provides the relevant facts and evidence, the regulatory authorities shall   notify the whistleblower of the action taken.

Article   20 Any organization or individual shall have the right to report an alleged   unfair competition to the regulatory authorities; the regulatory authorities   shall, upon receipt of a report, promptly handle pursuant to the law. 

The   regulatory authorities shall announce the hotline, mail address or email   address for acceptance of reports from the public and keep confidentiality   for whistleblowers. Where a whistleblower makes a report in real name and   provides the relevant facts and evidence, the regulatory authorities shall   notify the whistleblower of the action taken in   time.

Article   21 Platform operators shall clearly stipulate the   rules for fair competition within the platform in the platform service   agreement and trading rules, establish a mechanism for reporting, complaining   about unfair competition and handling disputes, and guide and regulate the   operators within the platform to compete fairly in accordance with the law.   If it is found that an operator within the platform has engaged in unfair   competition, necessary measures shall be taken in accordance with the law in   a timely manner, relevant records shall be kept, and a report shall be made   to the supervision and inspection department of the county-level or higher   people's government where the platform operator is domicile as required.

Chapter   4 Legal Liability

Chapter   4 Legal Liability

Article   17 Business operators who violate the provisions of this Law and cause   others to suffer damages shall bear civil liability pursuant to the law.

Where   the legitimate rights and interests of a business operator are harmed by   unfair competition, the business operator may file a lawsuit with a People's   Court.

The   compensation for a business operator who suffer damages due to unfair   competition shall be determined in accordance with the actual losses suffered   as a result of the infringement; where it is hard to ascertain the actual   losses, the compensation shall be determined in accordance with the gains   made by the infringer from the infringement. For business operators who   infringe upon commercial secrets maliciously and if the case is serious, the   compensation amount may be determined in accordance with one to five times   the amount determined using the aforesaid method. The compensation amount   shall also include reasonable expenses paid by the business operator to stop   the infringement.

Where   a business operator violates the provisions of Article 6 and Article 9 of   this Law, and it is hard to ascertain the actual losses suffered by the   rights holder due to the infringement or to ascertain the gains made by the   infringer from the infringement, the People's Court shall, in accordance with   the extent of the infringement, award compensation of less than RMB 5 million   to the rights holder.

Article   22 Business operators who violate the provisions of this Law and cause   others to suffer damages shall bear civil liability pursuant to the law.

Where   the legitimate rights and interests of a business operator are harmed by   unfair competition, the business operator may file a lawsuit with a People's   Court.

The   compensation for a business operator who suffer damages due to unfair   competition shall be determined in accordance with the actual losses suffered   as a result of the infringement or the   gains made by the infringer from the infringement. For business operators who   infringe upon commercial secrets intentionally   and if the case is serious, the compensation amount may be determined in   accordance with one to five times the amount determined using the aforesaid   method. The compensation amount shall also include reasonable expenses paid   by the business operator to stop the infringement.

Where   a business operator violates the provisions of Article 7 and Article 10   of this Law, and it is hard to ascertain the actual losses suffered by the   rights holder due to the infringement or to ascertain the gains made by the   infringer from the infringement, the People's Court shall, in accordance with   the extent of the infringement, award compensation of less than RMB 5 million   to the rights holder.

Article   18 Where a business operator violates the provisions of Article 6 of this Law   in carrying out misleading activities, the regulatory authorities shall order   the business operator to stop the illegal activities and confiscate the   illegal goods. Where the illegal business revenue is RMB 50,000 or more, a   fine of not more than five times the amount of illegal business revenue may   also be imposed; where there is no illegal business revenue or the illegal   business revenue is less than RMB 50,000, a fine of not more than RMB 250,000   may also be imposed. In serious cases, the business license of the business   operator shall be revoked. Where the enterprise name registered by a   business operator violates the provisions of Article 6 of this Law, the   business operator shall promptly complete name change registration   formalities; prior to the name change, the original enterprise registration   authorities shall use the business operator's unified social code to replace   its name.

Article   23 Where a business operator violates the provisions of Article 7 of this Law in carrying out misleading   activities or aiding others in committing acts of   confusion, the regulatory authorities shall order the business   operator to stop the illegal activities and confiscate the illegal goods.   Where the illegal business revenue is RMB 50,000 or more, a fine of not more   than five times the amount of illegal business revenue may also be imposed;   where there is no illegal business revenue or the illegal business revenue is   less than RMB 50,000, a fine of not more than RMB 250,000 may also be   imposed. In serious cases, the business license of the business operator   shall be revoked concurrently. 

Those who sell the illegal goods as prescribed in Article 7 of this Law   shall be punished in accordance with the provisions of the preceding   paragraph. Where a seller is unaware that the goods it is selling are   illegal, but can prove that the goods were lawfully obtained by it and   identify the provider, the supervisory and inspection department shall order   it to stop selling without imposing administrative penalties.

Where   the enterprise name registered by a business operator violates the provisions   of Article 7 of this Law, the business   operator shall promptly complete name change registration formalities; prior   to the name change, the original enterprise registration authorities shall   use the business operator's unified social code to replace its name.

Article   19 Where a business operator violates the provisions of Article 7 of this Law   in committing bribery, the regulatory authorities shall confiscate the   illegal income and impose a fine ranging from RMB 100,000 to RMB 3 million.   In serious cases, the business license of the business operator shall be   revoked. 

Article   24 Where relevant organizations violate   the provisions of Article 8 of this Law in   committing bribery, the regulatory authorities shall confiscate the illegal   income and impose a fine ranging from RMB 100,000 to RMB   1 million. In serious cases, the business license of the business   operator shall be revoked.

If the legal representative, principal person-in-charge, or directly   liable person of an operator bears personal liability for committing bribery,   or if a relevant individual accepts bribes, the supervision and inspection   department shall confiscate the illegal gains and impose a fine of no more   than RMB 1 million.

Article   20 Where a business operator violates the provisions of Article 8 of this Law   in making false or misleading commercial promotion or organising false   transactions etc. to help another business operator to carry out false or   misleading commercial promotion, the regulatory authorities shall order the   business operator to stop the illegal act, and impose a fine ranging from RMB   200,000 to RMB 1 million; in serious cases, a fine ranging from RMB 1 million   to RMB 2 million shall be imposed, and the business license of the business   operator may be revoked. A business operator who violates the provisions   of Article 8 of this Law in distributing false advertisements shall be punished   pursuant to the Advertising Law of the People's Republic of China.

Article   25 Where a business operator violates the provisions of Article 9 of this Law in making false or misleading   commercial promotion or organizing false transactions or making fake reviews etc. to help another   business operator to carry out false or misleading commercial promotion, the   regulatory authorities shall order the business operator to stop the illegal   act, and impose a fine ranging from RMB 200,000 to RMB 1 million; in serious   cases, a fine ranging from RMB 1 million to RMB 2 million shall be imposed,   and the business license of the business operator may be revoked concurrently. A business operator who   violates the provisions of Article 9 of   this Law in distributing false advertisements shall be punished pursuant to   the Advertising Law of the People's Republic of China.

Article   21 Natural persons, legal persons and non-legal persons other than   business operators who violate the provisions of Article 9 of this Law in   infringing upon commercial secrets shall be ordered by the supervision and   inspection department to stop the illegal act,

illegal   income shall be confiscated and a fine ranging from RMB 100,000 to RMB 1   million shall be imposed; in serious cases, a fine ranging from RMB 500,000   to RMB 5 million shall be imposed.

Article   26 Natural persons, legal persons and non-legal persons other than   business operators who violate the provisions of Article 10 of this Law in infringing upon commercial   secrets shall be ordered by the supervision and inspection department to stop   the illegal act,

illegal   income shall be confiscated and a fine ranging from RMB 100,000 to RMB 1   million shall be imposed; in serious cases, a fine ranging from RMB 1 million to RMB 5 million shall be imposed.

Article   22 Where a business operator conducting prize-giving sales violates the   provisions of Article 10 of this Law, the regulatory authorities shall order   the business operator to stop the illegal act, and impose a fine ranging from   RMB 50,000 to RMB 500,000. 

Article   27 Where a business operator conducting prize-giving sales violates the   provisions of Article 10 of this Law, the regulatory authorities shall order   the business operator to stop the illegal act, and impose a fine ranging from   RMB 50,000 to RMB 500,000. 

Article   23 Where a business operator violates the provisions of Article 11 of this   Law in harming the business goodwill or product reputation of its   competitors, the regulatory authorities shall order the business operator to   stop the illegal act, eliminate the impact, and pay a fine ranging from RMB 100,000   to RMB 500,000; in serious cases, a fine ranging from RMB 500,000 to RMB 3 million shall be imposed. 

Article   28 Where a business operator violates the provisions of Article 11 of this Law in harming the business goodwill or product reputation of other business operators, the regulatory authorities shall order the business operator to stop the illegal act,  eliminate the impact, and pay a fine ranging from RMB 100,000 to RMB 1 million; in serious cases, a fine ranging from RMB 1 million to RMB 5 million shall be imposed. 

Article   23 Where a business operator violates the provisions of Article 11 of this   Law in harming the business goodwill or product reputation of its   competitors, the regulatory authorities shall order the business operator to   stop the illegal act, eliminate the impact, and pay a fine ranging from RMB 100,000   to RMB 500,000; in serious cases, a fine ranging from RMB 500,000 to RMB 3 million shall be imposed. 

Article   29 Where a business operator violates the provisions of Paragraph 2, Paragraph 3 and Paragraph 4 of Article 13   of this Law in making use of Internet to engage   in unfair competition, the regulatory authorities shall order the   business operator to stop the illegal act, and impose a fine ranging from RMB   100,000 to RMB 1 million; in serious cases, a fine ranging from RMB 1 million to RMB 5 million shall be imposed. 

Article   24 Where a business operator violates the provisions of Article 12 of this   Law in making use of technical means to commit the following acts through   influencing user choice or any other method to hinder or disrupt normal   operation of the cyber products or services provided legitimately by other   business operators, the regulatory authorities shall order the business   operator to stop the illegal act, and impose a fine ranging from RMB 100,000   to RMB 500,000; in serious cases, a fine ranging from RMB 500,000 to RMB 3   million shall be imposed. 

Article   30 Where a platform operator violates the   provisions of Article 14 of this Law in by  forcing or covertly forcing the operators within   the platform to sell goods at prices lower than the cost, the   regulatory authorities shall order the business operator to stop the illegal   act, and impose a fine ranging from RMB 50,000 to RMB 500,000; in serious   cases, a fine ranging from RMB 500,000 to RMB 2   million shall be imposed. 

Article   23 Where a business operator violates the provisions of Article 11 of this   Law in harming the business goodwill or product reputation of its   competitors, the regulatory authorities shall order the business operator to   stop the illegal act, eliminate the impact, and pay a fine ranging from RMB 100,000   to RMB 500,000; in serious cases, a fine ranging from RMB 500,000 to RMB 3   million shall be imposed. 

Article   31 Where a business operator violates the provisions of Article 15 of this   Law in abusing one’s dominant position,   the regulatory authorities at or above the   provincial level shall order the business operator to make corrections within a prescribed time limit.  If it fails to make corrections within the time limit,   it shall impose a fine not more than RMB 1 million; in serious cases, a fine   ranging from RMB 1 million to RMB 5 million shall be imposed. 

Article   25 Where a business operator who engages in unfair competition   and violates the provisions of this Law takes the initiative to   eliminate or mitigate the harmful consequences of the illegal act, the   administrative punishment shall be reduced or mitigated pursuant to the law;   where the illegal act is trivial and promptly corrected and does not cause   harmful consequences, no administrative punishment shall be imposed.

Article   32 Where a business operator who engages in unfair competition   and violates the provisions of this Law takes the initiative to   eliminate or mitigate the harmful consequences of the illegal act, the   administrative punishment shall be reduced or mitigated pursuant to the law;   where the illegal act is trivial and promptly corrected and does not cause   harmful consequences, no administrative punishment shall be imposed.

Article   26 Where a business operator who engages in unfair competition   and violates the provisions of this Law is subject to administrative   punishment, the regulatory authorities shall make a record in the   creditworthiness records of the business operator and make an announcement   pursuant to the provisions of the relevant laws and administrative   regulations.

Article   33 Where a business operator who engages in unfair competition   and violates the provisions of this Law is subject to administrative   punishment, the regulatory authorities shall make a record in the   creditworthiness records of the business operator and make an announcement   pursuant to the provisions of the relevant laws and administrative   regulations.

Article   27 A business operator who violates the provisions of this Law shall bear   civil liability, administrative liability and criminal liability; where its   assets are insufficient to pay, it shall first bear the civil   liability. 

Article   34 A business operator who violates the provisions of this Law shall bear   civil liability, administrative liability and criminal liability; where its   assets are insufficient to pay, it shall first bear the civil   liability. 

Article   28 Persons who obstruct performance of duties pursuant to this Law by the   regulatory authorities and refuse or hinder investigation shall be ordered by   the regulatory authorities to make correction, a fine of not more than RMB 5,000   may be imposed on such an individual, a fine of not more than RMB 50,000 may   be imposed on such an organization, and the public security bureau may impose   security administration punishment pursuant to the law. 

Article   35 Persons who obstruct performance of duties pursuant to this Law by the   regulatory authorities and refuse or hinder investigation shall be ordered by   the regulatory authorities to make correction, a fine of not more than RMB 10,000 may be imposed on such an individual,   a fine of not more than RMB 100,000 may be   imposed on such an organization, and the public security bureau may impose   security administration punishment pursuant to the law. 

Article   29 A party concerned who disagrees with a decision made by the regulatory   authorities may apply for administrative review or file an administrative   lawsuit pursuant to the law. 

Article   36 A party concerned who disagrees with a decision made by the regulatory   authorities may apply for administrative review or file an administrative   lawsuit pursuant to the law.

Article   30 Staff of the regulatory authorities guilty of abusing official powers,   dereliction of duties, practicing favoritism or divulging commercial secrets   which have come into their knowledge during the investigation shall be   punished pursuant to the law.

Article   37 Staff of the regulatory authorities guilty of abusing official powers,   dereliction of duties, practicing favoritism or divulging commercial secrets,  personal privacy and personal information   which have come into their knowledge during the investigation shall be   punished pursuant to the law.

Article 31 Where a violation of the provisions of   this Law constitutes a criminal offence, criminal liability shall be pursued   in accordance with the law. 

Article   38 Where a violation of the provisions of this Law constitutes   acts in violation of public security administration shall be punished in   accordance with the law for public security administration;if it constitutes a criminal offence, criminal   liability shall be pursued in accordance with the law.

Article   32 In the civil proceedings involving infringement of commercial   secrets, where the rights holder of commercial secrets provides preliminary   evidence to prove that it has adopted confidentiality measures for the   asserted commercial secrets, and reasonably demonstrate that the commercial   secrets are infringed upon, the alleged infringer shall prove that the   commercial secrets asserted by the rights holder do not fall under commercial   secrets stipulated in this Law.

Where   the rights holder of commercial secrets provides preliminary evidence to   demonstrate reasonably that the commercial secrets are infringed upon and   provides any of the following evidence, the alleged infringer shall prove   that there is no infringement of commercial secrets:

(1)   there is evidence to prove that the alleged infringer has the means or   opportunities to obtain the commercial secrets, and the information used by   the alleged infringer is substantively identical to the trade secrets;

(2)   there is evidence to prove that the commercial secrets are disclosed or used   by the alleged infringer, or there is a risk of disclosure or use of the   commercial secrets; or

(3)   there is other evidence to prove that the commercial secrets are infringed by   the alleged infringer.

Article   39 In the civil proceedings involving infringement of commercial   secrets, where the rights holder of commercial secrets provides preliminary   evidence to prove that it has adopted confidentiality measures for the   asserted commercial secrets, and reasonably demonstrate that the commercial   secrets are infringed upon, the alleged infringer shall prove that the   commercial secrets asserted by the rights holder do not fall under commercial   secrets stipulated in this Law.

Where   the rights holder of commercial secrets provides preliminary evidence to   demonstrate reasonably that the commercial secrets are infringed upon and   provides any of the following evidence, the alleged infringer shall prove   that there is no infringement of commercial secrets:

(1)   there is evidence to prove that the alleged infringer has the means or   opportunities to obtain the commercial secrets, and the information used by   the alleged infringer is substantively identical to the trade secrets;

(2)   there is evidence to prove that the commercial secrets are disclosed or used   by the alleged infringer, or there is a risk of disclosure or use of the   commercial secrets; or

(3)   there is other evidence to prove that the commercial secrets are infringed by   the alleged infringer.

Chapter   5 Supplementary Provisions

Chapter   5 Supplementary Provisions

Article 40 Acts of unfair competition as prescribed in this Law that   are committed outside the People's Republic of China, which disrupt the   competitive order of the domestic market and harm the legitimate rights and   interests of domestic business operators or consumers, shall be handled in   accordance with the provisions of this Law and relevant laws.

Article   33 This Law shall be implemented with effect from 1 January 2018. 

Article   41 This Law shall be implemented with effect from 15 October 2025.