PRC Anti-Unfair Competition Law (Bill of Amendment)

Main contents:       No business operator may use property or other means to bribe the following entities or individuals in order to seek a deal opportunity or competitive advantage:

(1)    a member of the working personnel of the counterparty to the transaction;

(2)        the entity or individual appointed by the transaction counterparty to handle relevant matters; or

(3)        an entity or individual that uses its/his/her functions and powers or influence to influence the transaction.

The entities and individuals specified in the preceding paragraph may not accept bribes in the course of a deal activity.

A business operator may, in the course of a deal activity, pay a discount to the transaction counterparty or a commission to an intermediary so long as it does so in a manner that is above board. Where a business operator pays a discount to a transaction counterparty or a commission to an intermediary, it shall truthfully record the same in its accounts. The business operator that receives the discount or commission shall likewise truthfully record the same in its accounts. Where a member of the working personnel of a business operator engages in bribery, the same shall be deemed an act by the business operator, unless the business operator has evidence showing that the act by the member of its working personnel in question is unrelated to its seeking of a deal opportunity or competitive advantage (Article 8).

A business operator may not produce false or misleading commercial publicity in respect of the performance, function, quality, sales status, user evaluation, past honors, etc. of its goods to deceive or mislead consumers and other business operators. A business operator may not assist another business operator in conducting false or misleading commercial publicity by means such as arranging false transactions or fictitious evaluations (Article 9).

A business operator may not fabricate, disseminate or induce a third party to fabricate or disseminate false or misleading information to harm the goodwill or the reputation of the goods of another business operator (Article 12).

A business operator that utilizes a network to engage in production and operating activities shall comply with the provisions hereof. A business operator may not, by such means as influencing user choice or otherwise, use data and algorithms, technology, platform rules, etc. to commit the acts set forth below that impede or undermine the normal operation of the network product or service lawfully offered by another business operator:

(1)        inserting links into the business operator’s lawfully offered network product or service or forcing a redirection therefrom to a specific destination without such business operator’s consent;

(2)        misleading, deceiving or compelling users to modify, close or uninstall the network product or service lawfully provided by the other business operator;

(3)        maliciously making the network product or service lawfully offered by the other business operator incompatible;

(4)        acquiring, by fraud, coercion, electronic intrusion or other such underhanded means, and using data lawfully held by the other business operator;

(5)        abusing the platform rules to carry out malicious transactions; or

(6)        committing other acts that impede or undermine the normal operation of the network product or service lawfully offered by the other business operator (Article 13).