In late June, Hong Kong published its Competition Ordinance, the special administrative region’s first set of rules and regulations governing anti-competitive behavior by companies operating in Hong Kong. From law firm Skadden Arps:
“The Ordinance has three primary areas of focus. The so-called First Conduct Rule regulates agreements that restrict competition in Hong Kong (regardless of where those agreements are negotiated or executed,). The Second Conduct Rule (together with the First Conduct Rule, the Conduct Rules) prohibits abusing a substantial degree of market power to restrict competition in Hong Kong (again, regardless of where the conduct itself occurs). In addition, the very limited Merger Rule, at least initially, regulates only those mergers, acquisitions and joint ventures affecting the telecommunications sector in Hong Kong.
Despite its publication, the Ordinance is not yet in full effect. Indications from the secretary for Commerce and Economic Development who is responsible for the initial implementation, suggest that its provisions will enter into force through a staged approach, with the Conduct Rules and Merger Rule becoming effective in the next several months.”
Read the update, The 2012 Hong Kong Competition Ordinance - Skadden, Arps, Slate, Meagher & Flom LLP»