Clarifying the boundary of competition in accordance with the law, the newly revised "Prohibition of Monopoly Agreement Regulations" will come into effect next year.

Reporters learned today that the State Administration for Market Regulation has revised the "Regulations on Prohibition of Monopoly Agreements," clarifying the market share standards and other conditions that vertical monopoly agreements not subject to prohibition must meet, which will be implemented from February 1, 2026. Following the amendment of the Anti-Monopoly Law of the People's Republic of China in 2022, a new system was established to specify that operators with market shares below certain standards and meeting relevant conditions shall not be prohibited from reaching vertical monopoly agreements. In order to clarify the above market share standards and conditions, stabilize market expectations, and maintain fair competition in the market, the State Administration for Market Regulation conducted thorough research and evaluation, and solicited opinions from multiple parties to formulate specific rules: for vertical agreements that fix or limit the resale prices of goods, operators with a market share below 5% in the relevant market during the agreement period and with turnover of the goods involved below 100 million yuan shall not be prohibited; for other vertical agreements, operators with a market share below 15% in the relevant market during the agreement period shall not be prohibited, without turnover conditions.