APAC Competition Enforcement in 2026: What Should Businesses Expect?

A Q&A with BRG experts in Hong Kong shows how firms can prepare for heightened competition enforcement and scrutiny of digital markets in the Asia-Pacific region

Competition enforcement in Asia-Pacific (APAC) is set to become more demanding in 2026. Regulators are paying even closer attention to digital markets, introducing new rules and guidelines for mobile platforms and studying the relationship between generative artificial intelligence (Gen AI) and competition. Merger control is expanding, and trade tensions are expected to continue to influence assessment of competition cases.

We talked to Dennis Beling and Dorcas Kwan from our Hong Kong office about these developments and key takeaways for firms.

 

Q: Will the digital economy remain a priority for competition authorities across the APAC region?

A: Yes, we expect competition authorities to closely scrutinise conduct and mergers in the digital economy.

The move towards ex ante regulation will continue next year. The Japan Fair Trade Commission (JFTC) will start enforcing Japan’s Smartphone Act—a piece of ex ante regulation akin to the European Union’s (EU) Digital Markets Act but limited to smartphone operating systems—at the end of 2025. Countries including Australia and Thailand may introduce similar legislation next year.

Enforcement using existing competition laws will also continue. Competition authorities have been building capacity and issuing guidance.

• Market studies provide an opportunity for competition authorities to gather facts, understand how markets work and identify possible competition issues. Recently published market study reports have covered topics in the digital economy from Gen AI to e-commerce across the APAC region, including in India(AI), Japan (Gen AI), Malaysia (digital services),[1] the Philippines (digital platforms and online advertising), South Korea (e-commerce) and Taiwan (dark patterns).[2] We would expect at least some follow-on enforcement from these efforts.
• Some competition authorities have issued additional guidance materials on enforcement topics in the digital economy. For example, the Trade Competition Commission of Thailand (TCCT) started consulting on detailed guidelines on the assessment of conduct by e-commerce platforms. These guidelines cover conduct including price parity clauses, tying, self-preferencing and predatory pricing.
• Introduction of ex ante legislation has been put on hold in South Korea, but the new chair of the Korea Fair Trade Commission (KFTC) has identified digital platforms as a key area.
• Similarly, the Hong Kong Competition Commission still considers competition law enforcement against “[…] anti-competitive conduct affecting digital markets […]”[3] a priority and has been active in this area. We expect this to continue.

Overall, the enforcement landscape will remain complex for companies in the digital economy. Large players will have to comply with new ex ante rules. Traditional competition law enforcement targeting exclusionary conduct and mergers in the digital economy will remain a priority in many jurisdictions.

In addition, agencies in the APAC region increasingly intervene in cases involving potentially exploitative behaviours.

Q: What should firms contemplating mergers in the APAC region expect?

A: Obtaining merger clearance will become more complex. There will likely be more jurisdictions across APAC applying merger control, while existing regimes are becoming more sophisticated and demanding, and often broadening reviews to include policy considerations beyond competition.

The most significant change is Australia’s shift to a mandatory, suspensory merger regime starting 1 January 2026, replacing its longstanding voluntary system. The Australian Competition and Consumer Commission (ACCC) will require notification of transactions meeting the filing thresholds,  with penalties for noncompliance and voiding of nonapproved transactions.[4] Voluntary notification under the new regime has been available since July 2025 as part of the transition period.

Malaysia remains on the “watch list” for upcoming changes. Cross-sector merger control has long been proposed, and the Malaysian government has indicated repeatedly that amendments to the Competition Act will be introduced to the Parliament. In the meantime, sector-specific merger rules in aviation and communications remain in place.

Beyond pure competition analysis, merger review is increasingly entwined with wider policy considerations (e.g. national security, and industrial and trade policies). Deals in sectors deemed critical may receive special scrutiny. In China, State Administration for Market Regulation (SAMR) has authority under the Anti-Monopoly Law to “call-in” mergers that fall below the mandatory notification thresholds if they are suspected of having anticompetitive effects.[5] SAMR has exercised this power mainly in the pharmaceutical and semiconductor industries in recent years, based on publicly available information.[6] This targeted use signals a tighter scrutiny of sectors deemed strategic, and we expect this trend to continue in 2026.

Q: How might trade disputes influence competition enforcement and case assessments?

A: Geopolitics is already shaping policy direction, enforcement choices and competition parameters. South Korea’s KFTC chair acknowledged that the decision to put on hold the introduction of ex ante legislation on digital platforms has been influenced heavily by South Korea’s ongoing trade negotiations with the United States.

Meanwhile, some authorities have been using competition as part of a broader policy toolkit. For example, China’s SAMR has launched or intensified probes into foreign technology firms amidst tariff escalations, illustrating how trade tensions might have altered enforcement priorities. The US–China tariff flareup in early 2025, rapidly ratcheted up and then partially rolled back, is a salient example of how trading conditions can shift within weeks. For advisors, analyses must incorporate trade policy scenarios (e.g. tariff durability, export controls). This may affect market definition and competitive effects analyses (e.g. supply chain bifurcation or regional disconnection).

Q: What are key takeaways for 2026?

A: Complexity is the new normal.

Digital markets will remain a priority, merger control is expanding (led by Australia’s mandatory regime and Malaysia’s potential addition) and geopolitics/trade disputes will increasingly colour policy direction, enforcement choices and substantive assessments.

Companies should adopt cross-border, scenario-based strategies and prepare for more intrusive remedies and longer timelines across the region.

 

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Notes

[1] The study covers mobile operating and payment systems, e-commerce (retail marketplaces), digital advertising services and online travel agencies. See Malaysia Competition Commission, Public Consultation of Draft Final Report for Market Review on the Digital Economy Ecosystem under the Competition Act 2010 (2025). https://www.mycc.gov.my/public-consultation-of-draft-final-report-for-market-review-on-the-digital-economy-ecosystem-under.

[2] Full report in Chinese is available at https://www.ftc.gov.tw/upload/dce19999-c762-4963-834f-8cdf8168a9ca.pdf.

[3] Paragraph 36.

[4] Competition and Consumer Act 2010, as amended by Treasury Laws Amendment (Mergers and Acquisitions Reform) Act 2024.

[5] Article 26 of Anti-Monopoly Law (2022 Amendment).

[6] See for example, Synopsys’s proposed acquisition of Ansys (https://www.samr.gov.cn/fldys/tzgg/ftj/art/2025/art_6e9724001cf04f778f76346c223a423f.html) and Wuhan Yongtong Pharmaceutical’s proposed acquisition of Shandong Huatai Pharmaceutical (https://www.samr.gov.cn/fldes/tzgg/ftj/art/2025/art_7b2564ef1f144dbc9307b42471c38802.html).