Introduction

In a free market economy, undertakings (defined as any entity engaged in economic activity and including (groups of) companies, partnerships, sole traders etc.) compete with each other to offer the best range of products at the best price. Competition also drives efficiency and innovation, and directs businesses to meet consumer demands by providing the right products at the right price and quality.

A competitive market leads to lower prices, higher quality of products and more choices for customers. However, anti-competitive practices such as price fixing or output limitation agreements among competitors will harm competition and lead to higher prices and reduced choices for consumers.

This section introduces different types of anti-competitive practices that potentially raise concerns under the Competition Ordinance (Cap.619), and how businesses should comply with the Ordinance. The contents of this section are based on the Competition Commission’s publications (available at https://www.compcomm.hk/en/legislation_guidance/guidance/guidance.html) and the hypothetical examples taken directly from the Commission’s Guideline on the First Conduct Rule and Guideline on the Second Conduct Rule.

[Hong Kong Competition Commission website – Competition & Anti-Competitive Practices > Overview]

  1. About the Competition Ordinance
  2. The First Conduct Rule
  3. The Second Conduct Rule
  4. The Merger Rule
  5. Complaints and investigations

 

Updated on 14 September 2018

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