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ARTICLE · 17 APRIL 2015

Hong Kong Competition Law Series: Part 5

Mayer Brown
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Last week we looked at the Cardinal Sin of output limitation. This week we discuss Cardinal Sin No. 3 – market sharing.

Hong KongAntitrust/Competition Law
Hannah Ha
Hannah Ha
John Hickin
John Hickin
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Keywords: market sharing, competition, Hong Kong

Cardinal Sin No. 3 – Market Sharing

Last week we looked at the Cardinal Sin of output limitation. This week we discuss Cardinal Sin No. 3 – market sharing.

Market Sharing

Market sharing refers to agreements between competitors that allocate sales, territories, customers or markets for the production or supply of goods or services.

Why market share?

To insulate businesses from competition in their agreed "slice of the market" and, in doing so, maintain profitability and market share.

What is a market?

A market may be a sales territory, a market for goods, or customers. There may be a number of ways to carve up a market; here are some examples:

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