On June 27, 2025, the new Anti-Unfair Competition Law of the People's Republic of China (Second Amendment) was launched. The amended law will officially come into force on October 15, 2025.
Since its initial implementation in 1993, the Anti-Unfair Competition Law was amended in 2017 and some articles were revised in 2019. The current revision focuses on addressing practical challenges such as combating commercial bribery and regulating competition in the platform economy, particularly targeting new forms of unfair competition, including the misuse of data algorithms and monopolistic platform rules.
The revised Anti-Unfair Competition Law comprises five Chapters and 41 Articles, with key amendments including:
(1) Clarifying the General Principles of Anti-Unfair Competition
To ensure the correct political direction of anti-unfair competition efforts, the law stipulates that such work must adhere to the leadership of the Communist Party of China. The regulatory framework is improved, to strengthen enforcement and judicial oversight and maintain fair competition. Regulatory responsibilities are further defined, specifying that the county-level or higher authorities are designated to investigate and handle unfair competition, except where other laws or regulations assign enforcement to different departments.
(2) Refining Provisions on Unfair Competition Practices
The amendments expand the scope of prohibited acts causing market confusion, including unauthorized use of influential social media accounts, app names, icons, or the misuse of others’ products or company names that have obtained certain fame as search keywords to mislead consumers. Facilitating such confusion is also prohibited.
To strengthen anti-bribery measures, the law now enforces a "dual investigation of bribery and acceptance of bribes" principle. New articles are included, explicitly prohibiting individuals and entities from accepting bribes in transactions.
For online competition, platform operators must establish clear fair competition rules in their service agreements and take prompt action against unfair practices. Businesses are barred from exploiting data, algorithms, technology, or platform rules to engage in malicious activities. The amendments also refine regulations on false advertising, improper sales promotions, commercial defamation, and abuse of market dominance harming small and medium-sized enterprises.
(3) Strengthening Supervision and Penalties
Aligning with the Administrative Penalty Law’s principle of proportionate punishment combined with corrective measures, the amendments enhance regulatory tools and adjust penalties. Authorities may now summon corporate legal representatives or executives for corrective discussions in suspected violations.
Penalties for unfair competition are increased, including personal liability for executives and key personnel involved in commercial bribery. Additional penalties apply to entities and individuals accepting bribes in transactions.
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