Draft Rules Ban Unfair Internet Competition

Chinese regulators on Tuesday issued a lengthy set of draft regulations for the internet sector, banning unfair competition and restricting the use of user data.

Internet operators "must not implement or assist in the implementation of unfair competition on the Internet, disrupt the order of market competition, affect fair transactions in the market," the State Administration for Market Regulation wrote in the draft, which it published on its website.

Specifically, the regulator stated, business operators should not use data or algorithms to hijack traffic or influence users' choices. They may also not use technical means to illegally capture or use other business operators’ data.

Companies would also be barred from fabricating or spreading misleading information to damage the reputation of competitors and need to stop marketing practices like fake reviews and coupons or "red envelopes" used to entice positive ratings.

The draft rules also called for a ban on "two-choose-one," a practice e-commerce companies used to ban merchants from listing on rival platforms.

The rules are currently open to public feedback before a September 15 deadline. (Reuters)