LLAW6132 Chap.10 The PRC Anti-Unfair Competition Law and Platform Disputes
The PRC Anti-Unfair Competition Law and Platform Disputes
The 2025 Law in outline
China's revised Anti-Unfair Competition Law took effect on 15 October 2025. Article 2 keeps a general clause built on voluntariness, equality, fairness, good faith and business ethics.
The named acts cover confusion with influential identifiers, including domain names, apps and search keywords; bribery; false publicity, including fake reviews; trade secrets; prize sales; and commercial defamation.
Newer provisions reach internet conduct, improper acquisition of data, abuse of platform rules, forced below-cost sales and abuse of a dominant position over smaller firms.
The software conflict case
In Baidu v. 3721, one firm's address bar software stopped users installing a rival's free toolbar. The trial court found unfair competition but gave a narrow order and no apology or damages.
On appeal the court found that the software's four options all failed, so users were left with no real choice and the rival lost the chance to be freely chosen, and it broadened the order to cover downloading, installation and operation.
The 2025 Law now names forcing users to uninstall a rival's product.
Identifiers, distinctiveness and a long dispute
A Beijing court protected a voice assistant's wake command as an influential identifier and awarded RMB 500,000. The 2022 judicial interpretation defines business ethics and lists signs lacking distinctiveness, some of which can be protected after acquiring reputation.
The herbal tea dispute shows how far awards can move on appeal, from RMB 10 million to 1.44 billion and back to 0.317 billion after the Supreme People's Court found the advertising did not mislead.
Where the courts are heading
Nine cases selected by the Supreme People's Court in September 2026 treat AI-written fake reviews, order-snatching plug-ins, tampered live-stream videos and unsubstantiated comparative advertising as unfair competition or commercial defamation.
The Jin Yong litigation shows unfair competition pleaded alongside copyright on the same facts.
What this chapter covers
- 01
The general clause and definition in Article 2
- 02
Confusion with influential identifiers and search keywords
- 03
Internet acts, data and platform rules
- 04
Damages, statutory awards and extraterritorial reach
- 05
Baidu v. 3721 and the right to choose
- 06
Voice commands, distinctiveness and business ethics
- 07
The Supreme People's Court's selected cases
Worked example · free
Name the provision for each platform tactic
- 3Classify the below-cost pricing rule.
- 3Classify the data scraping.
Key terms
- Business Ethics
- Under the 2022 judicial interpretation, a code of conduct generally followed and recognised in a specific commercial field, informed by industry norms.
- Influential Identifier
- A name, packaging, trade name, domain name, app or similar sign with a definite influence, protected against confusing use.
- Commercial Defamation
- Fabricating or spreading false or misleading information that damages another operator's business or product reputation.
- Malicious Incompatibility
- Deliberately making one's network product incompatible with a rival's, a named internet act under the 2025 Law.
- Statutory Damages
- An award of up to RMB 5 million for confusion or trade secret infringement where loss and profit are hard to determine.
The PRC Anti-Unfair Competition Law and Platform Disputes FAQ
When did the revised Anti-Unfair Competition Law take effect?
On 15 October 2025. It keeps the structure of a general clause followed by named acts and adds provisions on data, platform rules, below-cost pricing and abuse of a dominant position, together with a rule reaching conduct abroad that harms competition in the domestic market.
Why was 3721 not ordered to pay damages or apologise?
The courts found that Baidu had not proved damage to its business reputation, which an apology would address, and that the toolbar was free and no loss was proved. The appeal court instead broadened the order to stop all interference with downloading, installation and operation.
Can a voice command be protected against copying?
It was in the Xiaodu case. A Beijing court held that long and substantial use and promotion had linked the command to Baidu and made it well known and influential, so a rival's use on its own device was unfair competition, with an award of RMB 500,000 plus legal fees.
Exam move
Draw the statute map from memory, article numbers down one side and conduct down the other, then place each lecture case on it. Mark which cases were decided under the earlier numbering, because the confusion provision has moved.
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