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.

Learn more about our Global Hospitality & Leisure practice and contacts in each office.

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 2012. 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.