The General Administration of Market Regulation amends the Provisions on Prohibition of Monopoly Agreements to take effect on February 1, 2026

The Zhitong Finance App learned that recently, the General Administration of Market Regulation revised the “Provisions on Prohibition of Monopoly Agreements” to clarify the market share standards and other conditions that must be met in unprohibited vertical monopoly agreements, which will come into effect on February 1, 2026. For vertical agreements that fix or limit the price of resale goods, where the operator's market share of the relevant market is less than 5% during the agreement period, and the turnover of the products covered by the agreement is less than 100 million yuan, it is not prohibited; for other vertical agreements, where the operator's market share of the relevant market is less than 15% during the agreement period, it is not prohibited, and there are no turnover conditions.

The original text is as follows:

The General Administration of Market Regulation amends the Provisions on Prohibition of Monopoly Agreements

A vertical monopoly agreement that is clearly not prohibited must be complied with

Market share criteria and other conditions

In order to implement the decisions and arrangements of the Party Central Committee and the State Council on strengthening anti-monopoly and effectively maintain the competitive order of the market, the General Administration of Market Supervision recently revised the “Provisions on Prohibition of Monopoly Agreements” to clarify the market share standards and other conditions that must be met in unprohibited vertical monopoly agreements, which will come into effect on February 1, 2026.

The “Anti-Monopoly Law of the People's Republic of China” was amended in 2022 to establish a new system, stipulating that vertical monopoly agreements reached by operators whose market share falls below a certain standard and meet the relevant conditions are not prohibited. In order to clarify the above market share standards and conditions, stabilize market expectations, and maintain fair competition in the market, the General Administration of Market Regulation, after careful research and evaluation, formulates and issues specific rules: for vertical agreements that fix or limit the price of resale goods, the operator's market share of the relevant market is less than 5% during the agreement period, and the turnover of the products involved in the agreement is not prohibited; for other vertical agreements, where the operator's market share of the relevant market is less than 15% during the agreement period, it is not prohibited, and there are no turnover conditions. At the same time, supporting and improving relevant procedures, it provides a clear and highly operable code of conduct. In the rule-making process, the General Administration of Market Regulation not only draws on international experience, but also fully considers the business models and competition rules of enterprises in China's hyperscale market, and forms institutional arrangements that are more in line with China's high-quality economic development based on China's market data and industrial structure characteristics.

The market share standards and conditions that must be met in unprohibited vertical monopoly agreements have been set, certification standards have been clarified, and enforcement scales have been unified to help operators clarify the boundaries of competition according to law and strengthen the construction of anti-monopoly compliance. In particular, it has freed up more room for flexible development for micro, small and medium-sized enterprises, helping to further stimulate market innovation vitality and continuously enhance endogenous motivation for high-quality development.

This article was compiled from the official website of the “General Administration of Market Regulation”, Zhitong Finance Editor: Liu Jiayin.