Hans Mahncke (HK Lawyer, 19 November 2008)

After years of sidestepping the issue, the Hong Kong Government released its proposal for a cross-sector competition law in May, marking the beginning of a three month public consultation period. Draft legislation will be tabled in LegCo during the 2008/9 legislative session.

More than a decade has passed since the Consumer Council first called for the introduction of competition legislation. Others, such as legislator Ronny Tong and Civic Exchange head Christine Loh, have spent many years promoting such a law. The government’s initial responses had been non-committal. In 1998, Tung Chee-Hwa’s mantra was that ‘competition is best nurtured and sustained by allowing the free play of market forces and keeping intervention to the minimum’. By 2000, he wanted to ‘create an environment where participation and fair competition are open to all’. In Donald Tsang’s first policy address in 2005, interventionism became more palpable in that the government would ‘promote fair competition and adopt appropriate measures according to the circumstances’. Three years later, and not a moment too soon for some, a comprehensive competition law is to be unveiled. But is it a good idea? Does Hong Kong even have a competition problem which needs fixing? Or are we better off sticking to the old dictum of laissez faire?

Read the full article at http://www.hk-lawyer.com/InnerPages_features/0/299/2008/11