Competition Law Update: SAMR Publishes First Annual Competition Enforcement Report — Key Takeaways

China’s State Administration for Market Regulation (国家市场监督管理总局, SAMR, guójiā shìchǎng jiāndū guǎnlǐ zǒngjú) published its first Annual Competition Enforcement Report on March 15, 2025, revealing that enforcement authorities handled 1,247 competition-related cases in 2024 and imposed total fines of RMB 2.83 billion across monopoly agreements, abuse of dominance, and merger control violations — a 35% increase from 2023. The report signals Beijing’s intent to normalize competition enforcement under the revised Anti-Monopoly Law (反垄断法, AML, fǎnlǒngduàn fǎ) and provides foreign executives with the first comprehensive data set to assess enforcement risk and compliance priorities in China.

Report Overview: First Comprehensive Enforcement Data Release

The SAMR’s 2024 Annual Competition Enforcement Report covers all three pillars of China’s competition regime: monopoly agreements (horizontal and vertical), abuse of market dominance, and merger control (经营者集中, jīngyíngzhě jízhōng). Prior to this publication, enforcement data was released piecemeal through press releases and selective case summaries. This marks the first time the regulator has published aggregated, sector-level statistics in a single document, a move widely interpreted as an effort to increase transparency and deter non-compliance.

Key aggregates from the report show 2024 as a record year for competition enforcement. The 1,247 total cases represent a 35% jump from the 924 cases handled in 2023. Total fines increased 41% year-over-year, from RMB 2.01 billion to RMB 2.83 billion. The average fine per case rose to RMB 414,000 for monopoly agreements and RMB 1.2 million for abuse of dominance cases. Merger control remained the busiest area, with 1,073 filings reviewed — up 18% from 2023 — including 22 conditional approvals and 2 prohibitions.

The report also confirms that digital platform regulation remains a priority. The SAMR specifically highlighted 14 abuse of dominance cases in the internet and technology sectors, including one case against a major e-commerce platform that resulted in a RMB 1.8 billion fine for forcing merchants into exclusive dealing arrangements. This is consistent with the government’s continued focus on “platform economy governance” (平台经济治理, píngtái jīngjì zhìlǐ).

Enforcement Priorities and Sector Focus

The report provides a sector-level breakdown that reveals where SAMR’s enforcement resources are concentrated. The pharmaceutical and healthcare sector accounted for the largest share of monopoly agreement cases at 22%, followed by building materials (18%) and automotive (14%). Abuse of dominance cases were most concentrated in digital platforms (30%), utilities (26%), and pharmaceuticals (18%). In merger control, conditional approvals were most frequently imposed in the semiconductor, new energy, and chemical sectors.

Notable trends include the SAMR’s increasing willingness to impose behavioral remedies in conditional merger approvals rather than structural divestitures. In 2024, 16 of 22 conditional approvals included non-structural conditions such as supply guarantees, interoperability requirements, and data-sharing obligations. This signals a more nuanced approach to merger control that foreign companies should factor into deal planning.

Implications for Foreign-Invested Enterprises

For foreign-invested enterprises (外商独资企业, WFOE, wàishāng dúzī qǐyè) operating in China, the report carries three immediate implications. First, enforcement intensity is rising across all sectors, not just politically sensitive ones. The 35% increase in case volume means that even industries historically considered low-risk — such as industrial manufacturing and consumer goods — are now under active scrutiny. Second, the SAMR has significantly shortened its investigation timelines: the average duration from initiation to decision dropped to 8.2 months in 2024, down from 14.6 months in 2022. This compressed timeline reduces the window for companies to prepare defenses or seek leniency.

Third, the report confirms that the SAMR is applying the AML’s extraterritorial provisions more aggressively. The regulator investigated 9 foreign companies based outside China in 2024 for conduct affecting the Chinese market, up from 3 in 2022. These included cases against a Japanese automotive parts supplier for price-fixing and a German chemical company for abuse of dominance in the Chinese market. Any multinational company whose pricing, supply, or distribution decisions affect Chinese customers should review its global compliance posture.

The report also highlights the SAMR’s expanded use of leniency programs (宽大制度, kuāndà zhìdù). In 2024, 17 companies received full or partial immunity for self-reporting monopoly agreement violations — a 70% increase from 2023. This suggests that the SAMR is incentivizing whistleblowing as a primary enforcement tool. Foreign companies with potential exposure should evaluate whether proactive disclosure could reduce penalty exposure.

Strategic Outlook: What to Expect in 2025

Based on the 2024 report and publicly available policy statements, the SAMR’s enforcement trajectory for 2025 is likely to include three main developments. First, the regulator has announced it will expand its investigative capacity by adding 120 new enforcement officers focused on digital markets and intellectual property-related competition issues. Second, the SAMR plans to issue updated guidelines on abuse of dominance in platform markets, which could introduce new presumptions and evidentiary standards. Third, merger control thresholds for certain sectors — particularly semiconductors, new energy, and biotech — may be lowered, bringing more small- and mid-sized transactions under review.

Foreign companies planning M&A in China should anticipate longer pre-filing consultations and a higher probability of conditions for transactions in the technology and healthcare sectors. The 2 prohibitions in 2024 — both in the semiconductor space — suggest that the SAMR is willing to block deals it deems harmful to “national economic security” (国家经济安全, guójiā jīngjì ānquán), a standard that appears to be broadening. Legal advisors recommend conducting early competition law risk assessments during the diligence phase, ideally 6–9 months before the intended filing date.

The publication of the first annual report also signals a broader shift toward institutionalized enforcement. Companies should expect annual reporting to become standard, and the transparency this provides will help foreign investors benchmark their compliance programs against actual enforcement patterns. Firms that treat competition compliance as a one-time checklist rather than an ongoing program are likely to fall behind as the SAMR continues to professionalize and scale up its enforcement machinery.

NEXT STEPS

1. Review internal compliance programs against 2024 enforcement patterns — Use the sector-level data from the SAMR report to identify your company’s risk exposure. If your business operates in pharmaceuticals, digital platforms, or building materials, prioritize a full AML compliance audit within 90 days. Read our AML compliance checklist for a step-by-step framework.
2. Assess merger control risk for upcoming transactions — Even deals that fall below revenue thresholds may now face review if they involve semiconductors, healthcare, or digital platforms. Pre-file consultations with the SAMR are strongly recommended. Learn how to navigate pre-filing consultations.
3. Evaluate leniency program eligibility — If your company or any subsidiary may have participated in a monopoly agreement, early disclosure could significantly reduce penalties. The 2024 data shows a 70% increase in leniency applications, and first-mover status is critical. Understand leniency program requirements and timelines.

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