A workshop sponsored by Hong Kong Consumer Council, in cooperation
with United Nations Conference on Trade and Development(UNCTAD)
Date:14 December 2001
Time: 10 a.m. - 4.30p.m.
Place: Consumer Council Main Conference Room22/F, K. WAH
Centre, 191 Java Road, North Point
Presenters:
Mr Hassan
Qaqaya, Chief, Capacity Building and Technical Assistance
Section, Competition Law and Policy and Consumer Protection
Section, UNCTAD
Hassan Qaqaya has a doctorate in
Economics from the London School of Economics and a Masters in
International Law from the Lausanne University. He has been working
for UNCTAD since July 1981 in which he specialised first in
Financial regulation, international trade, and anti-dumping. While
at UNCTAD he has also been teaching at the Webster University in
Geneva on international economics. Hassan has been travelling the
world constantly over the last years, assisting over 20 countries
in drafting competition law, application guidelines, and organising
training workshops.
Mr Pierre Arhel, Director, Conseil de la Concurrence
(Competition Council of France)
Pierre Arhel holds a doctorate in
international law from the Paris Sorbonne. He has been a long
standing member of the Competition Council of France and has been
involved in most of the important competition investigations by the
Competition Council. He has also worked for a number of years on
secondment to the Competition Directorate of the European
Community, while at the Directorate he was the official
representative of the European Community to UNCTAD and theWTO.
The Hong Kong Government considers
that competition is best nurtured and sustained by allowing the
free play of market forces and keeping intervention to a minimum.
Its policy is outlined in the 'Statement on Competition Policy'
issued May 1998 which requires all government entities to
- initiate pro competition measures on a sectoral basis through
(as appropriate) administrative, self regulatory and legislative
measures;
- propose initiatives for furthering the Government's competition
policy objective; and
- examine the impact of all new Government policy proposals on
competition.
This workshop is intended to build
capacity amongst relevant government officials involved in
administering the Government's economic programmes; to assist in
examining allegations of anti-competitive conduct; and to analyse
the impact on market competition of new policy proposals.
MORNING SESSION 10
a.m. to 12.30 p.m.
1. Policy
Formulation
(a) Economic
sectors that come under the responsibility of policy bureaus and
departments may be characterised by few participants, high barriers
to entry, and low growth.
In the face of these circumstances
what role if any is there for government in ensuring that
competition is maximised and markets continually strive towards
optimal efficiency. Examples may be discussed are:
- petroleum retailing;
- food retailing;
- land and building matters;
- transport.
Governments around the world are
increasing their deregulatory initiatives in sectors previously
considered 'natural monopolies'. This section of the program will
examine the challenges faced by the Hong Kong government, and
consider what is its proper role in deregulating monopoly markets
such as energy (gas and electricity) distribution.
In particular, what lessons can be
learned from experience in other economies, for example, North
America and Europe. How far should governments go in regulating
wholesale and retail prices? How can the success or otherwise of
deregulatory initiatives be measured?
(b) Certain
government policies might restrict supply and the extent of market
competition.
The licensing of market participants
is common for some economic sectors, for example lift and escalator
technicians. What are the major factors to be considered for a
viable policy that ensures markets are efficient while at the same
time having regard to the protection of the public interest.
AFTERNOON SESSION
2.00 p.m. to 4.30 p.m.
2. Alleged
Restrictive Business Practices
In administering areas of economic
activity, government officials may often be required to address
public concerns about alleged restrictive business practices. For
example, price fixing agreements, abuse of dominant position and
exclusive dealing. On the one hand such conduct may be seen as
enhancing the efficiency of the business sector. However, the
conduct might also increase the cost of doing business and damage
consumer welfare.
This section will examine in what
circumstances are these forms of conduct a concern, and what
courses of action are available to government, in the absence of a
competition law, to address the detriments to economic efficiency.
Practices to be examined and solutions explored are as follows.
Competitor agreements.
When are they a problem
(difference between joint venture and price fixing cartel). Do
price fixing cartels invariably break down through cheating? What
structural remedies are viable to counter their effect on economic
efficiency, e.g. by encouraging new entry.
Exclusive Dealing.
Why are some exclusive supply
agreements pro competitive and others anti-competitive. What can
government do if they are a problem.
Abuse of dominant
position
What is the difference between achieving market dominance through
developing superior products and business practices on the one
hand, and achieving or maintaining dominance through
anti-competitive practices. For example what is predatory pricing
and when is it a problem?
Mergers and Acquisitions
What are the differences
between conglomerate, vertical and horizontal mergers, and should
there be a concern with either category? How does 'contestable
market theory' apply to alleviate concerns with allegedly
anti-competitive mergers and acquisitions.
This Workshop is open to all Hong
Kong Government officials in relevant policy bureaus and
departments. Seating will be limited at the venue and persons
wishing to attend should register by sending the attached
registration form to the Consumer Council as soon as possible, and
in any event no later than 13 December 2001.
- Presentation materials
- The Statement on Competition Policy of the
Government ofHong Kong Special Administrative Region
- Industry studies and inquiries, and
responses toconsultation papers by Consumer Council
