I. About the Competition Ordinance

The Competition Ordinance (Cap. 619) applies to all sectors of the economy in Hong Kong and is enforced by the Competition Commission (Commission) and the Communications Authority (which shares concurrent jurisdiction with the Commission in respect to the telecommunications and broadcasting sectors). The Ordinance prohibits conduct which has the object or effect of preventing, restricting or distorting competition in Hong Kong. Such conduct includes anti-competitive agreements and concerted practices and abuses of a substantial degree of market power. The Ordinance also prohibits mergers which have or are likely to have the effect of substantially lessening competition in Hong Kong (currently only applicable to mergers involving a telecommunications carrier license holder).

The Ordinance prohibits restrictions on competition in Hong Kong through three “competition rules”:

The First Conduct Rule prohibits anti-competitive agreements;

The Second Conduct Rule prohibits abuses of substantial market power; and

The Merger Rule prohibits anti-competitive mergers.

Further guidance on these prohibitions can be found in the Commission’s Guideline on the First Conduct Rule, Guideline on the Second Conduct Rule and Guideline on the Merger Rule.

[Source: Commission’s Guideline on Complaints Paras 1.1-1.2]

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