Review № 8 of Chinese Antitrust News from the Experts of the BRICS Competition Centre
- China's first appeal against SAMR M&A decision rejected
- Measures for safe use of Face ID
- Labeling of generated content
- Plan for developing and updating legislation for 2025
- Fine targets for uncoordinated M&A
- SAMR to review deal to sell ports in Panama Canal
- BigTechs to monitor creditworthiness of suppliers of goods and services
- State Council reminds platforms of importance of fair operations
- Alibaba cooperates with authorities of its home province
- Compliance management guide for internet platforms
- Fair competition review methods
- Apple to create clean energy fund in China
- SAMR meeting with business
- Antitrust compliance seminar for manufacturing companies and software developers
- Antitrust cooperation with Japan and South Korea
China's first appeal against SAMR M&A decision rejected
The court decision on the appeal against the SAMR decision on the case of an uncoordinated economic concentration transaction has come into force - the first such appeal in the entire history of the Antimonopoly Law of the PRC (since 2008). The appeal was filed by Tobixi Pharmaceuticals, a company formed as a result of the purchase of Tobixi by Innovent Biologics. The regulator approved the transaction with an order: in particular, to terminate exclusive cooperation, reduce the price of drugs, etc. Tobixi, dissatisfied with the prescribed obligations, appealed to the Beijing Intellectual Property Court, which, after examining the case materials, rejected the claim of the applicant.
Source: Weixin
Measures for safe use of Face ID
China has issued the “Safe Use Measures for Facial Recognition Technology,” which will take effect on June 1st, 2025, the first legislation in China dedicated to this sensitive technology. The document clarifies the rules for processing facial information: recognition must have a specific purpose and sufficient necessity, use a method that minimizes the impact on individual rights and interests, etc. It clarifies that if other methods exist to achieve the same purpose, facial recognition technology should not be used as the only verification method. It is prohibited to deceive or force individuals to use Face ID under the pretext of corporate needs or improving service quality. It is necessary to obtain explicit consent from the subject, and use data encryption and other measures to protect data security. At the same time, data processors are required to register with the local internet data administration at least at the provincial level if the number of subjects of the stored data reaches 100,000 people.
Labeling of generated content
The Cyberspace Administration of China, the Ministry of Industry and Information Technology, the Ministry of Public Security, and the State Radio and Television Administration jointly issued the “Measures on Labeling of Artificial Intelligence-Generated Content.” The measures will take effect on September 1, 2025. The measures provide for labeling in both explicit and implicit forms. Explicit refers to labeling of text, audio, and image content that is clearly and verbally perceived by users. Implicit refers to labeling added during the technical recording of generated content data.
Source: Gov.cn
Plan for developing and updating legislation for 2025
SAMR has published a list of key legislative tasks for 2025. In order to create a fair and just market environment, it is planned to:
-promote the revision of the Provisions on the Prohibition of Network Marketing,
-adopt/revise the Implementation Methods of the Provisions on the Verification of Fair Competition, the Provisions on the Prohibition of Anti-Competitive Agreements, the Provisions on the Protection of Trade Secrets, and the Provisions on the Suppression of Abuse of Administrative Powers to Eliminate or Restrict Competition.
In order to promote the regulated development of the platform economy, it is planned to develop regulations such as the Methods for Regulating the Rules of Online Transaction Platforms, the Methods for Regulating Streaming E-Commerce, the Rules for Regulating the Quality and Safety of Products for Key Industries Sold Online, etc.
Source: SAMR
Fine targets for uncoordinated M&A
SAMR has published Pilot Guidelines for Establishing Administrative Penalties for Uncoordinated Economic Concentration Transactions. The document consists of 18 articles and 7 cases, using which the size of the administrative fine is calculated. The guidelines will help protect the interests of transaction participants, and make the system of imposing fines more regulated and transparent for business entities.
In addition, the regulator has also launched an online calculator of fines for carrying out a transaction without approval. Thus, when illegal actions are detected, companies can independently calculate the approximate amount of the administrative penalty they face. The calculator is available at the link:https://jyzjz.samr.gov.cn/query
Sources: SAMR 1, SAMR 2, SAMR 3
SAMR to review deal to sell ports in Panama Canal
In response to a question from Hong Kong media outlet HKTKWW about CK Hutchison's planned sale of Panama Canal ports to US investment fund BlackRock, SAMR representatives said they had taken note of the deal and would review its circumstances in accordance with the law to protect fair competition in the market and uphold the public interest.
According to SCMP, the parties will temporarily postpone the signing of the agreement due to the regulator's statement.
The sale of two CK Hutchison ports at each end of the Panama Canal was part of a $23 billion deal to sell BlackRock 43 ports in 23 countries. Earlier, Hong Kong newspaper Ta Kung Pao criticized the deal in a series of articles, calling it a "betrayal of the Chinese people."
BigTechs to monitor creditworthiness of suppliers of goods and services
A pilot project has been launched in Beijing: Under the leadership of SAMR, the Beijing Market Regulation Authority and Haidian District Data Authority signed a Memorandum of Cooperation on Supervision of Enterprise Credit Data with four platforms (Meituan, Tencent, Ant, and Dingdang). The project aims to establish a coordination mechanism between authorities and enterprises, strengthen verification of credit data, strengthen supervision of platform rules, and ensure the security of data flows. As planned, participating platforms will conduct detailed credit analysis of registered suppliers of goods and services, apply markers to warn of violations and reward good behavior, etc.
Source: SAMR
State Council reminds platforms of importance of fair operations
Vice Premier Zhang Guoqing visited the offices of online companies engaged in food delivery, online retail, streaming e-commerce and transportation services. He noted the importance of solving problems such as malignant extensive competition, unreasonable delivery times, unreasonable fees and commissions, counterfeits, false advertising, fictitious discounts and speculation in traffic.
Source: Weixin
Alibaba cooperates with authorities of its home province
On March 25, the government of Zhejiang Province in eastern China signed a strategic cooperation agreement with Alibaba Group and Ant Group. According to the agreement, the parties will integrate resources, closely coordinate activities, promote the healthy development of the platform economy, cooperate in areas such as artificial intelligence and other areas, and jointly help implement major national strategies.
Source: Weixin
Compliance management guide for internet platforms
SAMR has published Guidance Opinions on actions to promote effective compliance management in Internet platform companies. The Opinions highlight the need to:
- strengthen the structural organization of corporate compliance management systems
- increase the responsibility of company managers for the effectiveness of compliance management;
- encourage companies to hire qualified compliance specialists;
- develop lists of job responsibilities of compliance specialists;
- assist companies in developing lists of compliance risks;
- support companies in conducting compliance training and testing, as well as developing rewards and penalties for compliance management system employees.
Source: SAMR
Fair competition review methods
SAMR has published the Methods for the Implementation of the Regulation on the Review of Legislation for the Absence of Provisions that Hinder Competition. The document will officially come into force on April 20. The Methods provide general explanations of the structure of the fair competition review system, clarify the review standards (66 types of provisions that potentially hinder competition are provided), improve the review mechanism and establish forms of punishment for violation.
Source: SAMR
Apple to create clean energy fund in China
Apple Inc. said it will invest nearly $100 million to establish a clean energy fund in China. The announcement was timed to coincide with Apple CEO Tim Cook's visit to Beijing. Apple said in a statement that the move is aimed at expanding clean energy capacity in China and is part of the company's efforts to transition its supply chain to 100 percent renewable energy by 2030.
Source: The Economic Times
SAMR meeting with business
On March 19, SAMR Deputy Director Meng Yang held the second fair competition seminar for enterprises in 2025. This time, the topic of the meeting was the elimination of local protectionism and market segmentation. The seminar was attended by the heads of seven companies: National Pipeline Network Group, Sany Group, Anpu Technology, Siyuan Electric, Jingye Group, China Resources Pharmaceutical and Junlebao Dairy. During the meeting, SAMR officials recorded the problems and difficulties faced by companies, listened to their opinions and suggestions, and gave their comments on the issues raised.
Source: SAMR
Antitrust compliance seminar for manufacturing companies and software developers
On March 21, SAMR jointly with the Beijing Municipal Government held a lecture on antitrust compliance for enterprises in the manufacturing and information technology software industries. SAMR representatives emphasized that business entities engaged in software development and manufacturing should attach great importance to compliance with antitrust laws, improve corporate compliance systems, regulate business practices, and continuously improve their ability to prevent anti-competitive risks.
Source: SAMR
Antitrust cooperation with Japan and South Korea
The first trilateral meeting of antitrust regulators from China, Japan and South Korea was held in Hangzhou, eastern China, on March 20 and 21.
The mechanism of trilateral regular meetings aims to further deepen international cooperation on antitrust policy. During the event, participants discussed such topical issues as coordination of antitrust and industrial policies, as well as antitrust regulation in key industries and emerging sectors of the economy.
Sources: Weixin, China Daily
