China studies foreign regulatory models but does not seek to adopt them directly, preferring instead to base its approach on its own national realities, a representative of SAMR said at a conference in Seoul.
China's existing regulatory framework is adequate to address competition concerns in the booming tech sector, a senior antitrust official has said, dismissing the need to adopt EU-style digital-market rules.
"China's current competition regulatory framework is an effective system formed through long-term practice and is suitable for the overall development of China's digital economy,"
Hu Pinjie, deputy director-general of the Antimonopoly Enforcement Bureau Two at the State Administration for Market Regulation, or SAMR, said at a conference in Seoul yesterday.
While China studies global practices such as the EU's Digital Markets Act, or DMA, its approach must be "grounded in China's realities," the official said when addressing questions about not replicating foreign frameworks.
The Chinese approach stands in contrast to the EU's DMA, which creates special obligations for designated "gatekeeper" platforms.
"We keep updating our rules to keep up with the time,"
Hu said, pointing to China's 2022 update to the Antimonopoly Law that specifically addresses concerns in the digital era. The revised law prohibits companies from using "data and algorithms, technology, capital advantages or platform rules" to eliminate competition.
Last year, SAMR revised merger-notification thresholds to apply uniform standards across all market entities, including platform companies. The agency maintains authority to review sub-threshold deals if they are potentially anticompetitive, enabling it to capture so-called "killer acquisitions."
China's digital economy contributed more than 76 percent of the country's economic growth in 2024, according to Hu, highlighting both the sector's importance and the need for effective oversight.
SAMR has significantly stepped up enforcement in recent years, most notably with its historic $2.8 billion fine against Alibaba in 2021 for forcing merchants into exclusivity agreements. The agency also blocked Tencent's attempted merger of the country's two biggest game-streaming platforms Huya and DouYu that same year.
Further reflecting Hu's remarks on employing evolving regulatory tools, China has recently drafted or rolled out new rules aimed at curbing intense price rivalry among delivery platforms, including Meituan, JD.com, Alibaba's Ele.me and Taobao Flash Purchase. This self-destructive competition — referred to as "involution" in China — risks disrupting other industries and jeopardizing the country's economic stability.
Earlier this month, the government published draft rules seeking public feedback on digital-platform pricing regulations that would explicitly protect merchants' pricing autonomy. The revised Anti-Unfair Competition Law, effective Oct. 15, will prohibit platforms from forcing venders to sell goods below cost.
Source: MLex
