Competition law in Hong Kong is the law that sustains the market competition through controlling the companies’ anti-competitive conduct. The law is based upon the idea that free-trade helps the economy, the enterprises and the buyers while prohibiting various types of restrictions of trade and monopolization. If you run a business in Hong Kong, you should make sure you respect the competition law.
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The Competition Ordinance in Hong Kong
In 2012, Hong Kong enacted the commencement of the Competition Ordinance which provides the legal structure that punishes any anti-competitive conduct. The Ordinance was fully enforced on 14 December 2015.
Our lawyers in Hong Kong can offer you legal advice regarding the competition law in Hong Kong. They are experts in the legal system of Hong Kong and they can help you stand by your obligation of obeying the competition law.
What are the main interdictions in the Hong Kong competition law?
Hong Kong competition law has several principles that are very important on the Hong Kong market. The main interdictions are in the form of competition rules:
– the first conduct rule interdicts arrangements and jointly planned practices that eventually restrict competition in Hong Kong. The enforcement includes the following infringements: fixed prices, market-controlling, out-put restriction and bid-rigging;
– the second conduct rule interdicts a business that has considerable market dominance and abuses it, thus restricting competition in Hong Kong;
– the merger rule interdicts the mergers that have as a result the diminishing of the Hong Kong competition;
The Competition Ordinance provides several exclusions and exonerations from the Conduct Rules. This can be granted in the following situations:
– the agreement/conduct increases economic efficiency;
– the agreement/conduct operates under a general economic interest;
– the agreement/conduct is made in accordance to a legal requirement.
Which are the legal authorities that provide for a judicial enforcement regarding the competition law in Hong Kong?
The competition law in Hong Kong is enforced by the Commission and the Competition Tribunal.
The Commission deals with competition complaints. The Commission takes action before the Tribunal whether it deals with complaints or at its own initiative.
The Tribunal is organized within the judiciary as a superior court, dealing with competition cases lead by the Commission.
If you need further details on the competition law, please contact our attorneys in Hong Kong.