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China Revises Law to Combat Online Unfair Competition

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China’s top legislative body is taking action to address growing concerns about unfair competition in cyberspace. A senior official announced on Monday that the country is revising its anti-unfair competition law to better tackle new forms of online misconduct and safeguard market order.

According to Huang Haihua, spokesperson for the Legislative Affairs Commission of the Standing Committee of the National People’s Congress, the rapid evolution of internet technologies and business models has led to a consistent increase in online unfair competition disputes.

To confront these emerging issues, lawmakers have analyzed relevant legal cases and updated provisions within the Law against Unfair Competition. The draft amendment is set for review during an NPC Standing Committee session in Beijing from Tuesday to Friday.

Huang noted that the latest draft will clarify criteria for identifying unfair practices, including violations of data rights and bad-faith transactions. It will also specifically target large enterprises that abuse their dominant market position, such as by delaying payments to smaller businesses. Additionally, the revision proposes establishing a fair competition review system to curb harmful rivalry among online platforms.

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