Alliance prepares for the new HK Competition Law

Hong Kong Competition Commission (HKCC) has announced on 17 July 2015 that the Competition Ordinance (Cap. 619) (the Ordinance) will come into full effect on 14 December 2015. 

The Competition Bill was first introduced into Legislative Council in July 2010.  Thereafter, the Ordinance was enacted on 14 June 2012, and finally it took almost another 3.5 years to come into full effect on 14 December 2015.

Alliance started its Competition Law Compliance Programme since September 2010. Alliance published the first its first Fair Competition Compliance Manual and Fair Competition Compliance Policy in December 2011 and has updated the manual in November 2015.   Employees with a potential risk have participated in various training programs and seminars organized by Alliance, Hong Kong Construction Materials Association Limited, Cheung Kong Infrastructure Materials, Heidelberg Cement, HKCC. Baker & McKenzie are currently conducting third party audits and training within Alliance to ensure Alliance is ready.

Alliance has issued Competition Compliance Newsletters and Bulletins to all employees to keep them updated and to maintain their high awareness of this new Competition Law.

Alliance and all employees are bound by the Fair and Competition Compliance Policy and the ‘golden rules of fair competition’: Compete fairly, no improper collusion, no unlawful abuse of market power and no dishonest dealings.

Our shareholders, Chairman, Directors and CEO are all committed to fully comply with this new Competition Law. There will be zero tolerance within Alliance for any non-compliance.
 

The Competition Ordinance (Cap. 619) (“CO”) was passed by the Legislative Council on 14 June 2012 providing for a cross-sectoral competition law prohibiting anti-competitive conduct through establishment of three competition rules, namely the first conduct rule (prohibition of anti-competitive agreements, decisions or concerted practices), the second conduct rule (prohibition of the abuse of a substantial degree of market power), and the merger rule (prohibition of mergers involving telecommunications carrier licensees which have, or are likely to have, the effect of substantially lessening competition in Hong Kong) (collectively referred to as the “competition rules”).