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  • 1997.11.03

The Consumer Council welcomes the Government's announcement that it is taking steps to make its existing competition policy 'more proactive, transparent and comprehensive'.

It believes that the Government has given a clear signal of the importance it attaches to competition by creating the Competition Policy Advisory Group (COMPAG) under the chairmanship of the Financial Secretary and announcing that it will issue a policy statement on the objectives of and guiding principles on promoting competition.

The Council is, however, disappointed that the Government does not yet feel able to introduce a comprehensive competition law, administered by a dedicated competition authority, to guard against anti-competitive practices in both the public and the private sectors.

The Council believes that although sector specific regulation has a role to play in promoting competition, it is generally less able to cope with technological change and industrial reorganisation than a general competition law.

Moreover, it is not as efficient a means of promoting competition as a comprehensive competition law as it may lead to duplication of effort as different regulators consider the same issues.

The Council calls upon the Government to announce a timetable to review the need for such legislation when COMPAG has gained experience of dealing with competition issues.

To ensure the maximum effectiveness of the announced policy in the interim, the Council believes that COMPAG should:

  1. Establish a clear and well publicised procedure for the consideration of complaints about anti-competitive practices in both the public and the private sectors.

  2. Create a central database of complaints to establish the extent to which anti-competitive practices represent a problem in Hong Kong.

  3. Ensure that its own work on competition and decisions relating to competition taken by government departments are transparent.

  4. Publish a regular report on its own deliberations which will also give clear and public guidance as to which business practices may restrict competition and the circumstances in which such practices may be looked on as harmful or as benign.

  5. Promote a wide-ranging public debate on competition issues to help shape the implementation of the Government's present sector specific competition policy.

The Council welcomes the opportunity offered to it by Government to continue contributing to the promotion of competition in Hong Kong. It will consider how best it may contribute in the light of the suggestions put forward by Government, the resources it has available and its primary role of protecting and promoting the interests of consumers.