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Jiang Chuqin

Hong Kong’s antitrust watchdog has launched a citywide campaign to raise awareness about the risks of sharing commercially sensitive information among businesses.
The initiative will remind companies that they risk falling foul of the law if they share information such as pricing, costs or future business strategies.
To make the topic more engaging, the Competition Commission will roll out a three-episode romantic short drama, together with leaflets, exhibitions and lectures, to help local enterprises understand what information can – and cannot – be shared with competitors under the Competition Ordinance.
Commission executive director Gary Shiu Moon-cheung said on Tuesday that information related to prices and quantities, details specific to an individual company, and data about markets with only a few players were more likely to raise concerns under the law.
“Enterprises should plan and implement their own business strategies independently,” Shiu said. “If they share sensitive information, it will be easier for competitors to predict and align their behaviour, thereby harming effective competition.”
He added that not all exchanges of information among companies in the same industry were prohibited. For example, sharing details about employee safety, emission standards or discussions about public policies and regulatory matters generally would not pose a competition risk.

Rasul Butt, the CEO of the commission, said the impact of exchanging commercially sensitive information on competition “may not be as apparent as other forms of anti-competitive conduct such as bid-rigging or price-fixing”.
“But such conduct does have the potential of inflicting harm on competition and consumers,” he said.
Butt noted that during the commission’s previous engagement with businesses, especially small and medium-sized enterprises, it had identified a need for companies in the same trade to communicate and collaborate. Yet, many expressed concern about inadvertently breaching the ordinance when they shared sensitive information.
This had prompted the commission to launch the campaign to provide practical guidance to help businesses identify and avoid such risks, he said.
Since the ordinance came into effect in 2015, the commission has brought 15 cases before the Competition Tribunal.
Of these, five involved the exchange of commercially sensitive information in different sectors, including information technology, cleaning services and real estate agencies.
In four cases, the court ruled that all respondents contravened or were involved in the contravention of the ordinance, while the remaining case is pending trial.
Penalties have reached HK$30 million (US$3.86 million), with four people banned from serving on a company board for two years.
The commission reminded businesses that those who disclosed or received commercially sensitive information were equally at risk.
It also cautioned that sensitive information passed through a third party, such as a trade association, a supplier or a distributor, would be treated in the same way under the ordinance.
In these circumstances, the third party could also face legal consequences.


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Competition Commission initiative reminds companies that sharing information such as pricing, costs or future strategies could risk falling foul of the law


Competition Commission initiative reminds companies that sharing information such as pricing, costs or future strategies could risk falling foul of the law.


Hong Kong competition watchdog adds touch of drama to campaign about fair play

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Competition Commission initiative reminds companies that sharing information such as pricing, costs or future strategies could risk falling foul of the law

Competition Commission initiative reminds companies that sharing information such as pricing, costs or future strategies could risk falling foul of the law