Over 98 percent of companies in Hong Kong are SMEs that lack legal knowledge and might easily fall into a position that breaches the law, Stanley Wong says. Photo: HKEJ
The government is launching a campaign to educate small and medium-sized enterprises (SMEs) about the Competition Ordinance, which will take effect next month, the Hong Kong Economic Journal reported Tuesday.
Competition Commission chief executive Stanley Wong said over 98 percent of companies in the city are SMEs that lack legal knowledge and might easily fall into a position that breaches the law.
The commission has put together some hypothetical cases in a manual that demonstrates four major types of anticompetitive practices that are prohibited by the new law.
These practices are price collusion, output control, market allocation and bid rigging.
Wong called on SMEs to review the conduct of their business to acknowledge their risks in this area and impose any precautionary measures to mitigate those risks.
The commission will unveil details of the enforcement of the law by the end of this year, together with the progress it has made in its studies of building renovations and the oil and gas markets.
The commission chief did not say which sectors will be the key targets in enforcement of the law.
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