Full Implementation Of The Competition Ordinance

The Competition Ordinance (Cap. 619) ("Competition Ordinance") came into full effect on December 14, 2015. There are three major competition rules under the Competition Ordinance, which are the First Conduct Rule ("FCR"), the Second Conduct Rule, and the Merger Rule. In particular, employers should be aware of the FCR, which, subject to certain exemptions, prohibits an undertaking from making an agreement or engaging in a concerted practice that has the object or effect to prevent, restrict, or distort competition in Hong Kong.

According to the Guideline on the FCR issued by the Competition Commission on July 27, 2015, discussions, collective bargaining, or arrangements (as the case may be) with respect to salary or other conditions of work between one or more employees and their employers, or between a trade union and an employer, are outside the scope of the FCR. The primary risk for employers lies in agreements or arrangements between competing employers.