China: Consultation opened on new antitrust draft regulation

On 17 August 2021, the State Administration for Market Regulation (SAMR) published draft rules targeting the anti-competitive behaviour of internet platforms. Simultaneously a consultation period was opened, that will run until 15 September 2021. Specifically, the antitrust draft regulation will ban the usage of algorithms and data to influence users. That includes fake reviews and incentives for ratings. Finally, the SAMR also is outlawing the so-called "choosing one from two" practice that was the origin for Alibaba's large fine of 18.23 billion yuan earlier this year. The practice can roughly be described as an exclusivity agreement that forces merchants to use their platform, weakening rival platforms in the process. The SAMR is empowered to enforce these rules and discipline internet firms for violation of the rules. These measures were taken in an effort to restore competition in the internet platform market and ensure fair transactions.