Hong Kong’s Competition Bill - Implications for Directors & Senior Executives

Originally published 14 February 2011

Keywords: Hong Kong, competition bill, company directors, senior executives

As most readers will be aware, a comprehensive cross-sector Competition Bill (the "Proposed Law") is currently before Hong Kong's Legislative Council. A Bills Committee is currently reviewing the Proposed Law, which according to the current legislative schedule may be enacted in the first half of 2012.

The Proposed Law aims to prohibit conduct that prevents, restricts or distorts competition in Hong Kong, and contains three key prohibitions. In addition to prohibiting certain M&A transactions that restrict competition in Hong Kong, the Proposed Law contains a generally worded prohibition of anti-competitive agreements and a prohibition against unilateral conduct that constitutes abuse of substantial market power. These latter two prohibitions are collectively referred to as the 'conduct rules'.