# Policy & Legal Basis
Article 12 of Measures for the Administration of Auctions
To apply for auction business, enterprises and their branches shall be subject to the examination conducted by the local competent commerce department at the city level, which shall then submit it to the competent commerce department at the provincial level for verification and issuance of a certificate of approval for auction business.
Article 3 of Administrative Measures for Internet Information Services Internet information service is divided into two categories: profitable Internet information service and non-profitable Internet information service. Non-profitable Internet information service refers to the provision free of charge of public, commonly-shared information through Internet to web users.
Article 8 A non-profitable Internet information service provider shall file for record its activities at telecommunications administrative authorities of the province, autonomous region or municipality directly under the Central Government or the Ministry of Information Technology (MII).