Keywords: Hong Kong, competition ordinanace, hotel and leisure
Competition Ordinance 2012
After years of consultation, some hesitation, and notwithstanding continued opposition from many in the business sector, Hong Kong finally enacted a general competition law on 14 June 2012.
The Competition Ordinance which has now received the approval of Hong Kong's legislators is a very different creature from the version first presented to the Legislative Council in July 2010, but even so the law will significantly impact the way business is conducted in Hong Kong going forward and not least the hotel and leisure sector. And with significant penalties for infringements, including possible fines of up to 10 percent of corporate group turnover in Hong Kong, it demands to be taken seriously. Whether it comes to making price-related decisions, undertaking contractual negotiations, structuring joint ventures, participating in trade association meetings, communicating with competitors, or imposing exclusivity or pricing obligations on distributors, a multitude of day-to-day commercial activities stand to be affected.
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