Keywords: competition ordinance, competition law

The Cardinal Sins

Last week we discussed the value of competition law compliance and left you with the Golden Rules of competition.

This week we begin our discussion on the types of conduct that may infringe the Competition Ordinance with the Cardinal Sins: the four most serious types of anti-competitive conduct that will almost always contravene competition law.

First Cardinal Sin: Price Fixing

Price fixing is where two or more competitors agree (whether formally or informally, directly or indirectly, or by a nod and a wink) to set prices (including any component or formulae of price), for the sale of goods or services.

Third Cardinal Sin: Market Sharing

Market sharing is where competitors carve up a market, whether by the type of goods or services they sell, or by the type or location of customers they serve, and agree not to "overstep" into each others' territory.

Second Cardinal Sin: Output Limitation

Output limitation is where competitors agree to limit the volume or type of goods or services they supply.

Fourth Cardinal Sin: Bid Rigging

Bid rigging is where, after having agreed among themselves who the winner should be, competitors participate in a bid for the sake of appearance and use tactics to engineer that result.

Next week

Each of the Cardinal Sins entails an "agreement" between competitors. Next week, we will explore the concept of an "agreement" and start to take a deeper look at the various forms each Cardinal Sin may take.

Originally published 18 March 2015

Learn more about our Hong Kong office and Antitrust & Competition.

Visit us at

Mayer Brown is a global legal services organization comprising legal practices that are separate entities (the Mayer Brown Practices). The Mayer Brown Practices are: Mayer Brown LLP, a limited liability partnership established in the United States; Mayer Brown International LLP, a limited liability partnership incorporated in England and Wales; Mayer Brown JSM, a Hong Kong partnership, and its associated entities in Asia; and Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. "Mayer Brown" and the Mayer Brown logo are the trademarks of the Mayer Brown Practices in their respective jurisdictions.

© Copyright 2015. The Mayer Brown Practices. All rights reserved.

This article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein. Please also read the JSM legal publications Disclaimer.