China competition watchdog proposes new rules on website operators

News Broadband China 17 AUG 2021
China competition watchdog proposes new rules on website operators

China’s State Administration for Market Regulation has issued draft rules aimed at stopping unfair competition on the internet, CNBC reports. The proposals cover a wide range of areas, from prohibitions on the way companies can use data to stamping out fake product reviews.

The SAMR said operators should not provide false data, such as the number of clicks on a piece of content, nor should they conceal negative reviews and only promote positive reviews. Furthermore, internet platforms should not use data, algorithms and other technical means to influence user choices, or other methods to carry out so-called traffic hijacking. This is where a company looks to redirect a user to their own website or service while they’re browsing another. They also should not use data and algorithms to collect and analyze competitors’ trading information.

SAMR said it could hire third-party institutions to audit data if an operator fails to adhere to the rules. The proposals are open to public comment until 15 September before they take effect. 

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