The Competition Ordinance (Cap. 619) (“CO”) provides for a cross-sectoral competition law prohibiting anti-competitive conduct through three competition rules –

• The first conduct rule provides that an undertaking must not make or give effect to an agreement, engage in a concerted practice, or as a member of an association of undertaking, make or give effect to a decision of the association, if the object or effect of the agreement, concerted practice or decision is to prevent, restrict or distort competition in Hong Kong;
• The second conduct rule provides that an undertaking that has a substantial degree of market power must not abuse that power by engaging in conduct that has as its object or effect the prevention, restriction or distortion of competition in Hong Kong; and
• The merger rule provides that an undertaking must not, directly or indirectly, carry out a merger involving telecommunications carrier licensees that has, or is likely to have, the effect of substantially lessening competition in Hong Kong.

Concurrent Jurisdiction

Under the CO, the CA is conferred concurrent jurisdiction with the Competition Commission (“Commission”) to enforce the CO in respect of the conduct of certain undertakings operating in the telecommunications and broadcasting sectors.

The CA and the Commission have signed a Memorandum of Understanding (“MoU”) to coordinate the performance of their functions on which they have concurrent jurisdiction. Competition cases will be handled by the two competition authorities according to the arrangements set out in the MoU.

For cases involving the telecommunications or broadcasting sectors and falling within the concurrent jurisdiction, the CA will ordinarily take the role of the lead authority, which will assume responsibility for exercising the relevant powers and functions conferred upon it under the CO. For details, please refer to the MoU.

• Legislation and Guidelines issued under the CO
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