Competition Ordinance (Chapter: 619) 競爭條例 (619章)

Long title
詳題

  • An Ordinance to prohibit conduct that prevents, restricts or distorts competition in Hong Kong; to prohibit mergers that substantially lessen competition in Hong Kong; to establish a Competition Commission and a Competition Tribunal; and to provide for incidental and connected matters
    本條例旨在禁止妨礙、限制或扭曲在香港的競爭的行為;禁止大幅減弱在香港的競爭的合併;設立競爭事務委員會及競爭事務審裁處;以及就附帶和相關的事宜訂定條文

competition rule
競爭守則

  • means 指
    • the first conduct rule 第一行為守則 (Not in operation yet. Intention: An undertaking must not make use of agreement, concerted practice, or decision with the object or effect to prevent, restrict or distort competition in Hong Kong. The rule will particularly apply to horizontal agreement among competitors rather than vertical agreement with suppliers.)
    • the second conduct rule; or 第二行為守則;或 (Not in operation yet. Intention: An undertaking with substantial degree of market power in a market must not abuse its power by engaging in conduct to prevent, restrict or distort competition in Hong Kong. Factors including market share, market entry barrier and the ability of its potential competitors to enter the market shall be considered in assessment of market power.)
    • the merger rule 合併守則 (Not in operation yet. Intention: Regulating mergers or acquisitions of carrier licensees under the Telecommunications Ordinance only.)

serious anti-competitive conduct
嚴重反競爭行為

  • means any conduct that consists of any of the following or any combination of the following:
    • fixing, maintaining, increasing or controlling the price for the supply of goods or services
    • allocating sales, territories, customers or markets for the production or supply of goods or services
    • fixing, maintaining, controlling, preventing, limiting or eliminating the production or supply of goods or services
    • bid-rigging

bid-rigging
圍標

  • means:
    • an agreement—
      • that is made between or among 2 or more undertakings whereby one or more of those undertakings
        • agrees or undertakes not to submit a bid or tender in response to a call or request for bids or tenders, or
        • agrees or undertakes to withdraw a bid or tender submitted in response to such a call or request; and
      • that is not made known to the person calling for or requesting bids or tenders at or before the time when a bid or tender is submitted or withdrawn by a party to the agreement or by an entity controlled by any one or more of the parties to the agreement; or
    • a submission, in response to a call or request for bids or tenders, of bids or tenders that are arrived at by an agreement—
      • that is made between or among 2 or more undertakings; and
      • that is not made known to the person calling for or requesting bids or tenders at or before the time when a bid or tender is submitted or withdrawn by a party to the agreement or by an entity controlled by any one or more of the parties to the agreement.
  • examples:
    • cover pricing - one or more bidders in a tender process submit artificially high prices, purporting to be genuine bids, which are not intended to win the contract
    • bid rotation - bidders agree to submit the lowest bid on a rotating basis
    • bid suppression - bidders agree to either refrain from bidding or withdraw their bids
    • market/customer division - bidders agree not to compete in a designated geographic region or for a specific contract

The Four Don'ts for SME as advised by the Competition Commission

  • Dont' fix prices 不要合謀定價:
    • including an agreement on a formula to calculate prices or elements of prices such as discounts, rebates, promotions or credit terms
    • verbally or in writing including 'a wink and a nod'; or at an association's meeting
  • Don't restrict output 不要限制產量:
    • including restricting the volume or type of particular goods or services
  • Don't share (divide) market 不要瓜分市場:
    • including allocating customers by geographic area, agreeing not to compete for each other's customers and agreeing not to enter or expand into a competitor's market
  • Don't rig bids 不要圍標:
    • agreeing who should 'win' a bid
    • supporting the designated winner by refraining from bidding, withdrawing bids or submitting bids with higher prices / unacceptable terms
  • Compete. Don't cheat