Hong Kong’s competition watchdog has urged industry and commerce groups to pay attention to a new law which would deem some of the prevalent local business practices as unfair or illegal.
Trade groups must review their business practices to avoid breaking the new competition law, which is expected to come into full force later this year, the Competition Commission said.
If trade unions advise member companies on how they might price certain products or services, it might be considered violation of the law, the watchdog said, according to the Hong Kong Economic Journal.
It does not matter whether the members actually follow the recommendations, the commission’s chief executive Stanley Wong was quoted as saying.
Wong also remarked about pricing advice given to retailers by wholesale distributors.
He cited a recent example where a collective boycott action was initiated by a newspaper hawker group against a publication due to pricing issues.
If a business is boycotted due to issues over the price it is charging, it will amount to breach of the law, Wong said.
The commission has published a brochure listing out potential “dos and don’ts”, as it sought to educate trade groups and the public about the new competition law.
The brochure, whose contents can be downloaded from the commission’s website, will be distributed to over 500 industry and commerce groups in the city.
Translation by Vey Wong
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