Hong Kong Government Announces Significant Changes To Its Competition Bill

Keywords: Hong Kong, government, competition bill, proposed changes, first conduct rule

The Hong Kong Government has proposed key changes to the Competition Bill that is currently before the region's Legislative Council. The proposed changes are significant, and may be seen as an effort by the government to show that it is willing to compromise to address business sector concerns that had threatened to derail support for the Bill ahead of an anticipated vote on its passage in the second calendar quarter of 2012.

The proposed changes:

• distinguish between "hardcore" and "nonhardcore" violations of the so-called 'First Conduct Rule', and effectively provide for business operators to receive a warning and an opportunity to adjust their conduct before they face any more rigorous enforcement action for the non-hardcore violations;