Shi Jianzhong: Regulate online competition and escort the sustainable and healthy development of the digital economy

On May 11, the State Administration for Market Regulation released the full text of the Interim Provisions on Online Anti-Unfair Competition. The regulations will come into force on September 1, 2024. On the same day, China Economic Network published the Chinese chapter "Regulating Online Competition Behavior and Escorting the Sustainable and Healthy Development of the Digital Economy - A Review of the Interim Provisions on Online Anti-Unfair Competition" by Shi Jian, Vice President of China University of Political Science and Law and Dean of the Institute of Data Rule of Law.

Original question | Regulating Online Competition and Escorting the Sustainable and Healthy Development of the Digital Economy -- A Review of the Interim Provisions on Anti-Unfair Competition on the Internet

Author | Shi Jianzhong, Vice President of China University of Political Science and Law, Dean of the Institute of Data Rule of Law

Source | China Economic Net

As a typical form and important carrier of the digital economy, the platform economy is an important engine for digital industrialization and industrial digitization, which not only leads the rapid development of digital industrialization, but also helps traditional industries overcome problems such as digital transformation and industrial upgrading, and provides consumers with more choices to share the fruits of innovation and development, which is an indispensable and important force for the high-quality growth of the mainland economy. However, in the process of rapid development of the platform economy, there are also unfair competition behaviors carried out by using data, algorithms, platform rules and network technology, disrupting the order of market competition, affecting fair market transactions, directly or indirectly harming the legitimate rights and interests of other operators or consumers, and restricting the healthy development of the platform economy itself. Therefore, in order to lead the platform economy to seize new opportunities and respond to new challenges, the State Administration for Market Regulation adheres to the regulatory idea of standardizing and developing in development, and recently issued the "Interim Provisions on Online Anti-Unfair Competition", which is a legal measure to improve the governance system of the platform economy in the mainland, which will further promote and regulate the fair competition and innovative development of the platform economy, promote the digital economy to a new level, realize the deep integration of data and reality, and help the high-quality development of the economy.

1. Adhere to the problem-oriented approach, and the "Provisions" focus on solving the problem of unfair competition in the field of platform economy, and escort the sustainable and healthy development of the digital economy

In the context of the rapid development of the new generation of information technology revolution, the platform economy is a new engine of economic development. At the same time, the platform economy has changed the traditional transaction mode, cooperative division of labor, value creation and distribution form, showing the characteristics of rapid update and rapid change of the competition model, which inevitably produces new competitive contradictions and problems, breeds many new types of unfair competition behaviors, and even forms the phenomenon of black and gray industrialization, resulting in "bad money driving out good money", seriously inhibiting innovation vitality and affecting the healthy development of the digital economy. The order and environment of fair competition and trading are not only the common demands of the majority of business entities and consumers, but also the public goods that the government should provide. In order to further promote higher quality, more efficient, fairer, more sustainable and safer economic development and social progress, it is necessary to coordinate vitality and order, efficiency and fairness, development and security, and constantly improve the fair competition system and the fair competition governance system on the basis of respecting the laws of technological innovation and economic development. Chapters 2, 3 and 4 of the Provisions adhere to the problem-oriented approach and provide operable institutional rules for solving the current outstanding unfair competition behaviors in the field of platform economy, which is conducive to the sustainable and healthy development of the digital economy.

2. Adhere to the development orientation, the "Provisions" aim to promote the development of the platform economy, highlighting the value choice of improving the digital economy governance system

It is the firm attitude and unshirkable responsibility of the party and the government to actively create conditions to support the platform economy to play a better role in Chinese-style modernization. The standardized and healthy development of the digital economy requires a fair and competitive market environment and a good institutional environment. As a typical model of the digital economy at this stage, the platform economy is an economic activity supported by the vigorous development of digital technology. Therefore, the regulation of the platform economy is not only related to the market order and economic development, but also affects technological innovation and application. The judgment of the legitimacy of competitive behavior in the field of platform economy is facing new challenges in technology and other aspects. On the one hand, it can effectively curb unfair competition behaviors that affect the development of new industries, new forms of business and new models, and on the other hand, it is necessary to leave institutional space for innovation and development. The "Provisions" innovate the concept of governance, adhere to the development orientation, and clearly stipulate in Article 1 the content of "promoting the standardized, sustainable and healthy development of the digital economy", highlighting the value choice of improving the digital economy governance system. The promulgation and implementation of the "Provisions" will not only help promote the benign interaction between fair competition and innovative development, but also improve the ability and level of competition governance.

3. Adhere to pluralistic governance, the "Provisions" provide clear guidance for the compliance operation of platform enterprises, and promote the modernization of digital economy governance capabilities and systems

The platform economy is the aggregation of multiple subjects, the particularity of the transaction structure and the complexity of the interest structure, which on the one hand determine the necessity of government supervision, and on the other hand, determine the multi-dimensional and pluralistic nature of the platform economy governance system and mechanism. In other words, a sound platform economy governance system, in addition to government supervision, should also include industry autonomy, platform self-discipline and social co-governance. Based on the Anti-Unfair Competition Law and other laws, the Provisions not only refine the government regulatory rules, but also encourage industry associations and other social organizations to guide and regulate the competition of member units in accordance with the law, and improve the ability and level of industry autonomy and platform self-discipline. The governance synergy formed by government supervision, industry autonomy, platform self-discipline and social co-governance can become an inexhaustible driving force and guarantee for promoting and regulating the innovative, orderly and shared development of the platform economy. The formulation and implementation of the Provisions will help guide operators in the field of platform economy and relevant industry associations to establish a more complete compliance governance system, improve anti-unfair competition compliance capabilities, avoid anti-unfair competition compliance risks, establish a good image of operating in accordance with the law, and build a more collaborative and open innovation ecosystem, so as to enhance core competitiveness and stimulate greater endogenous development vitality.

Fair competition is the core of a market economy. The Party and the government have always attached great importance to improving the legal and regulatory system of fair competition, and strengthening anti-monopoly and anti-unfair competition law enforcement, so as to create a market environment that promotes fair competition and prosperity and innovation. Proceeding from the actual development of the platform economy in mainland China at the present stage, the "Provisions" focus on the more prominent competition issues in the field of platform economy, and are guided by promoting the sustainable and healthy development of the platform economy, improve the institutional rules that regulate the competitive behavior of the platform economy, respond to the concerns of the majority of operators and consumers, and further consolidate the institutional foundation for fair competition and innovative development of the platform economy.

(This article is only the author's point of view and does not represent the position of intellectual property)

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