Hong Kong is in the process of adopting a competition law. This article will critically evaluate the Competition Bill, highlighting a number of substantive and institutional shortcomings. In particular, it will be argued that the Merger Rule's exclusive application to the telecommunications sector is intended, without logical or convincing reasons, to maintain the status quo. With regard to the institutional framework, it will be shown that the misalignment of roles and expertise, the proposed two-tier commitment mechanism, and the opacity of decided cases in the absence of a formal case reporting channel risk negatively impacting the level of judicial enforcement. The outcome will likely be a shift from adjudication to negotiated settlement. Finally, the article will argue that the Bill's limited application, as well as its broad exclusions and exemptions, almost certainly reflect the government's wariness of competition law, its sector-specific mindset, and its resistance to change. Absent a change in its ambivalence towards promoting economic efficiency across different sectors, there is little chance of a robust competition law being introduced.
World Competition