Beijing, February 11, 2026 — China’s Anti-Monopoly and Anti-Unfair Competition Commission of the State Council has issued new guidelines aimed at strengthening oversight of monopolistic practices in the utilities sector, seeking to safeguard fair competition and protect consumer and public interests.
The Anti-Monopoly Guidelines for the Utilities Sector, released on February 4, set out a comprehensive framework for preventing and addressing monopoly agreements and abuse of dominance in industries such as water supply, electricity, gas, heating, wastewater treatment, waste disposal and public transport.
Utilities markets often include natural monopoly segments, particularly in core network infrastructure. However, Chinese authorities have identified recurring concerns that operators may leverage monopoly advantages in these segments to exclude or restrict competition in upstream or downstream competitive activities. The guidelines seek to clarify the boundary between lawful natural monopoly operations and unlawful exclusionary conduct.
Structured in seven chapters and 50 articles, the document codifies enforcement experience and refines standards for identifying monopoly agreements and abusive practices. It outlines common horizontal conduct, including price fixing, output restrictions and market allocation, and specifies that agreements may arise through written contracts, meetings or oral communications. It also details vertical practices such as resale price maintenance and restrictive conditions imposed on trading partners.
Guidance on Abuse of Dominance
On abuse of dominance, the guidelines elaborate factors for assessing unfairly high prices, refusal to deal and discriminatory treatment. They also address scenarios where utilities operators may use administrative procedures, service processes or contractual arrangements to limit trading opportunities.
Notably, the framework incorporates provisions addressing digitalisation risks. It states that utilities operators must not use data, algorithms, technological or capital advantages, or platform rules to engage in monopolistic conduct prohibited under China’s Anti-Monopoly Law. The inclusion reflects concerns that digital transformation could facilitate new forms of exclusionary behaviour.
The guidelines also strengthen compliance and governance mechanisms. They encourage operators and industry associations to enhance antitrust compliance systems and clarify the application of leniency policies. Coordination between competition authorities and sector regulators, law enforcement bodies and supervisory agencies is also emphasised to improve enforcement effectiveness.
Source: https://www.samr.gov.cn/xw/zj/art/2026/art_41db95b2626a4735884d44a41fc401b5.html
