Azernews.Az

China’s State Administration for Market Regulation (SAMR) on Saturday released draft antitrust compliance guideline for internet platforms, seeking public opinion, comment and setting clearer conduct standards for platform operators, Azernews reports, citing Global Times.

To help operators identify risks tied to monopoly agreements, the draft advises platforms to avoid reaching such agreements, organizing others to do so, or providing material assistance during platform operations or self-operated business activities.

To address risks of abusing market dominance, the draft urges platforms with significant market power should regularly assess whether they hold a dominant position and avoid engaging in abusing such a position while providing platform services or operating their own businesses. It also lists examples of abusive conduct, drawn from enforcement experience and the characteristics of internet platforms, to help firms strengthen compliance.

The draft also outlines eight typical risk scenarios, such as excessive pricing, sales below cost, blocking and shielding, "choose-one-from-two" requirements and "lowest price guarantee across the network."

SAMR noted that with the aim of reducing uncertainty costs for platform operators, the draft guidelines are non-binding, and is only intended to provide general direction for antitrust compliance.

An official from the SAMR noted China's platform economy has grown rapidly and now plays a crucial role in resource allocation, innovation, economic development. Because internet platforms have strong network effects and influence a wide range of stakeholders, including platform operators, merchants, consumers, and employees. As platform operators influence the competitive ecosystem through platform rules, data, algorithms, and technical means, conduct that excludes or restricts competition can harm the interests of multiple parties, the official added.

In today's fast-changing market environment, compliant operation has become a crucial "pass" for companies. Firms that meet international antitrust standards can enter overseas markets more smoothly and expand their global presence.

According to the SAMR official, enforcement experience shows that monopoly risks are common in the platform economy, and platform operators have long called for targeted and practical compliance guidelines.

The official said the draft guidelines marks a concrete measure to implement the decisions and deployments of the Communist Party of China Central Committee and the State Council. It helps improve the antitrust regulatory framework for the platform economy, raises compliance standards among operators, and encourages stronger innovation and internal growth.

China issued antitrust guidelines for the platform economy in early 2021. The new draft guidelines will further improve the regulatory system, said Liu Dingding, a veteran tech industry analyst, told the Global Times on Saturday, adding that the draft helps promote the healthy and stable long-term development of the sector, not only faster growth.