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Rose Webb speaking at an event co-organised by the Competition Commission in September last year. Photo: K.Y. Cheng
Hong KongHong Kong economy

It’s time to comply, Hong Kong competition watchdog tells city’s trade and professional groups

Those who run afoul ‘risk enforcement action’, Competition Commission boss warns

Phila Siu
Phila Siu
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A total of 12 trade and professional associations have removed or are in the process of removing anti-competitive arrangements after the Competition Ordinance came into effect in December last year, the competition watchdog said.

The announcement by the Competition Commission came as its chief executive also advised associations that had not yet reviewed their business practices to do so immediately to identify risk areas and adjust their practices to conform with the new law.

In a statement released on Monday, Rose Webb, the commission’s chief executive, urged associations and their members “to understand the ordinance, identify risk areas and, if needed, adjust their practice to comply with the law”.

READ MORE: Hong Kong smartphone prices fall after competition law comes into force

She added the commission would take “necessary action to ensure compliance” now that the ordinance was fully effective. In particular, associations and their members who were “engaged in cartel conduct” would be subject to “risk enforcement action”. The 12 associations:

  • Hong Kong Container Tractor Owner Association
  • Hong Kong Real Estate Agencies General Association
  • Hong Kong Society of Notaries
  • The Association of Accredited Advertising Agencies of Hong Kong
  • The Hong Kong Federation of Insurers
  • The Hong Kong Institute of Surveyors
  • The Hong Kong Jewellers’ and Goldsmiths’ Association
  • The Hong Kong Jewellery and Jade Manufacturers Association
  • The Institution of Fire Engineers (Hong Kong Branch)
  • The Kowloon Pearls, Precious Stones, Jade, Gold and Silver Ornament Merchants Association
  • The Law Society of Hong Kong
  • Travel Industry Council of Hong Kong

The commission is an independent statutory body set up to enforce the ordinance. Enacted in June 2012, the ordinance came into force in December last year to prohibit conduct that prevents, restricts or distorts competition and mergers that substantially lessen competition in the city.

READ MORE: Can Hong Kong make the most of its new competition law?

Months before the ordinance took effect, the commission launched a campaign to ensure local associations were ready to comply. The campaign comprised direct engagements with the associations. The commission also reviewed the website information of more than 350 associations.

During its review, the commission identified examples of high-risk practices, including price recommendations or fee scales as well as codes of conduct or rules that could restrict price competition between competing association members.

“Trade and professional associations have a positive impact on the Hong Kong economy by encouraging best industry practices, providing training to members, as well as promoting their industry’s interests,” said Webb. “They must be careful not to organise or facilitate anti-competitive arrangements.”

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