The State Administration for Market Regulation has amended the "Provisions on Prohibiting Monopoly Agreements", which will be implemented from February 1, 2026.

Recently, the State Administration for Market Regulation amended the "Provisions on Prohibition of Monopoly Agreements," clarifying the market share standards and other conditions that vertical monopoly agreements that are not prohibited must meet. The amended provisions will come into effect on February 1, 2026. For vertical agreements that fix or limit the resale price of goods, if the operator's market share in the relevant market is less than 5% during the agreement period, and the turnover of the goods involved in the agreement is less than 100 million yuan, they will not be prohibited. For other vertical agreements, if the operator's market share in the relevant market is less than 15% during the agreement period, they will not be prohibited, without turnover conditions. The amendment of the "Provisions on Prohibition of Monopoly Agreements" by the State Administration for Market Regulation aims to implement the decision deployment of the Party Central Committee and the State Council to strengthen anti-monopoly efforts and effectively maintain market competition order. The new system established after the amendment of the Anti-Monopoly Law of the People's Republic of China in 2022 stipulates that operators with market shares below a certain standard and meeting relevant conditions will not be prohibited from reaching vertical monopoly agreements. In order to clarify the market share standards and conditions mentioned above, stabilize market expectations, and maintain fair competition in the market, the State Administration for Market Regulation, after careful study and assessment, and extensive consultations, has formulated specific rules: for vertical agreements that fix or limit the resale price of goods, operators with a market share below 5% in the relevant market during the agreement period, and with the turnover of the goods involved in the agreement less than 100 million yuan, will not be prohibited; for other vertical agreements, operators with a market share below 15% in the relevant market during the agreement period will not be prohibited, without turnover conditions. At the same time, relevant procedures have been improved and clear, operable behavior standards have been provided. In the process of formulating the rules, the State Administration for Market Regulation has not only drawn on international experience but also fully considered the business models and competition laws of enterprises in China's super-large market, based on China's market data and industrial structure characteristics, to form a system arrangement that is more in line with the high-quality development of China's economy. By setting the market share standards and conditions that vertical monopoly agreements that are not prohibited must meet, the recognition criteria have been clarified, and the enforcement standards have been unified, which helps operators clarify the boundaries of legal competition and strengthen anti-monopoly compliance. In particular, it provides more flexible development space for small and medium-sized enterprises, which helps further stimulate market innovation vitality and continuously enhance the internal driving force of high-quality development.