China Sharpens Anti-Monopoly Focus on Digital Economy and Public Utilities

Introduction: A New Era of Vigorous Enforcement

China’s anti-monopoly enforcement has entered a new era of vigor and
sophistication in 2025, with a sharpened focus on the digital economy and public
utilities. The State Administration for Market Regulation (SAMR), China’s top
antitrust watchdog, has launched a series of high-profile investigations and
imposed significant penalties on companies for monopolistic practices, sending a
clear signal that it is serious about promoting fair competition and protecting
consumer interests. For international law firms and their clients, this heightened

enforcement activity requires a proactive and comprehensive approach to
competition law compliance.
This article provides an overview of the key trends in China’s anti-monopoly
enforcement in 2025, with a particular focus on the digital economy and public
utilities. It also offers practical guidance for companies on how to navigate this new
era of vigorous enforcement and to mitigate their competition law risks.

The Digital Economy: A Key Enforcement Priority

The digital economy has been a key enforcement priority for SAMR in 2025. The
regulator has taken action against a number of leading technology companies for a
range of anti-competitive practices, including:

Abuse of Dominant Market Position: SAMR has investigated and penalized
several dominant platforms for practices such as “choosing one of two,” which
forces merchants to exclusively use their platform, and for using algorithms to
set unfair prices.

Monopolistic Agreements: The regulator has also cracked down on
monopolistic agreements between digital platforms, such as agreements to fix
prices or to divide markets.

Failure to Notify Mergers: SAMR has imposed fines on a number of
companies for failing to notify their mergers and acquisitions for antitrust
review, even in cases where the transaction values were relatively small.

Public Utilities: Protecting Consumer Interests

In addition to the digital economy, SAMR has also been focusing on anti-
competitive practices in the public utilities sector. The regulator has launched

investigations into a number of state-owned enterprises (SOEs) in sectors such as
water supply, electricity, and natural gas for abusing their dominant market
positions to charge excessive fees or to impose unfair trading conditions.
This focus on public utilities reflects the government’s commitment to protecting
consumer interests and to ensuring that essential services are provided in a fair and
competitive manner.

Implications for Businesses

The heightened anti-monopoly enforcement in China has several important
implications for businesses:

Increased Scrutiny: All companies, both foreign and domestic, can expect
increased scrutiny from SAMR regarding their business practices. This is
particularly true for companies in the digital economy and public utilities
sectors.

Higher Fines and Penalties: The fines for anti-monopoly violations have been
increasing, and SAMR has shown a willingness to impose significant penalties
on companies that engage in anti-competitive practices.

Reputational Damage: In addition to the financial penalties, an anti-
monopoly investigation can also result in significant reputational damage,
which can have a long-lasting impact on a company’s business.

Best Practices for Competition Law Compliance

To mitigate their competition law risks in China, companies should:

Conduct a Competition Law Audit: Companies should conduct a
comprehensive audit of their business practices to identify any potential
competition law risks. This audit should cover everything from pricing and
distribution to mergers and acquisitions.

Develop a Competition Law Compliance Program: Companies should
develop a comprehensive competition law compliance program that includes
clear policies and procedures, regular training for employees, and a system for
monitoring and reporting potential violations.

Seek Expert Legal Advice: The anti-monopoly legal landscape in China is
complex and constantly evolving. It is essential to seek expert legal advice
from experienced competition lawyers to ensure that your business practices
are compliant with the latest laws and regulations.

Conclusion: A More Competitive Market

The vigorous enforcement of China’s anti-monopoly law is a positive development
for the long-term health of the Chinese economy. By cracking down on anti-
competitive practices, SAMR is creating a more level playing field for all companies
and is fostering a more innovative and dynamic market. For businesses that are
committed to fair competition and compliance, this new era of enforcement
presents an opportunity to thrive in a more competitive and transparent market.