2nd reading for unfair competition law
THE latest draft amendment to the Anti-Unfair Competition Law adds procedural requirements for government seizure of assets during investigations.
The draft revision was given a second reading at yesterday’s National People’s Congress Standing Committee session.
Compared with the previous draft reviewed in February, the new draft stipulates that market supervisors must hand in written reports and gain approval for investigations of suspected activities.
The seizure of assets and investigation of bank accounts must be approved by government supervisory bodies at city-level or above.
“Actions such as the seizure of assets and investigation of bank accounts may cause significant impacts on companies, so we have to conduct these investigations very carefully,” said Zhang Mingqi, vice chairman of NPC’s Law Committee.
The new draft also made changes in regulating unfair online competition.
“Some aspects of unfair online competition are the same as in traditional competition, while others are unique to the Internet due to technical reasons,” said Zhang.
Operators cannot use technical means to influence users’ decisions or to disturb or sabotage products and services legally provided by others.
Banned online activity includes misleading, cheating or forcing users to “modify, close or uninstall” competitors’ products or services. Products or services designed to be incompatible with other products or services are also banned.
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