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Amy Nip

Hong Kong's new competition law will bring tangible benefits to consumers by tackling price fixing and lowering prices in distorted markets, the head of a new watchdog says.
Dr Stanley Wong, who was appointed chief executive officer of the Competition Commission last September, said it was a unique challenge to enforce the law when people had questioned its necessity in the world's freest economy.
In his first one-on-one interview, the Canadian lawyer told the South China Morning Post yesterday: "We know from studies that cartels generally make prices 10 per cent higher than otherwise."
When pharmaceutical companies colluded to fix vitamin prices in the 1990s, Hongkongers were overcharged by an estimated US$178 million.
Overseas jurisdictions have been active in prosecuting price fixing of liquid crystal displays used on the screens of computers, mobile phones and televisions, as well as car components. All such prosecutions would affect consumers, and it was expected that prices for related products would drop when cartels were stopped, Wong said.
He said the commission was mandated by law to pursue any cases involving products sold in the city. The priority would be to prosecute four types of core anti-competitive conduct: price fixing, market allocation, output restrictions and bid-rigging.
Price recommendations by professional and trade bodies would be a concern, as they could be seen as a type of price fixing. Wong said he was tired of arguments that such a practice ensured quality of service. "Frankly it's nonsense," he said.
The Hong Kong Travel Industry Council has already decided to drop its decade-old practice. At present, travellers on group tours pay a fee before departure. They are then charged service fees for escorts, local guides and drivers at the end of the tour at a level capped by the council.
Wong applauded the move and dismissed claims that consumers could be charged more after the change.
"Let the consumers choose. Some tour guides are better than others. Why should I be paying exactly the same price? That may be great for the tour guide, but not necessarily for consumers," he said.
The commission is now gearing up for the full implementation of the Competition Ordinance, which was passed in 2012 and expected to take full effect before the end of this year.
Wong said he did not have a "target list" for prosecutions but would study areas of public concern.
"We can't focus on markets and goods that only benefit a handful of consumers," he said. "We are not going to be focusing, putting all our energies into luxury goods. But obviously if there's a problem with food distribution, which affects everybody, we will look at it."


Hong Kong competition law could force prices down, says commission head

Commission CEO Stanley Wong in his office. Photo: May Tse

Small businesses should not fear competition law, says watchdog chief Dr Stanley Wong

Dr Stanley Wong says small businesses have little to fear from the new competition law. Photo: May Tse

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Hong Kong Economy

Watchdog's head says the fight against price fixing means consumers will be the winners


Hong Kong's new competition law will bring tangible benefits to consumers by tackling price fixing and lowering prices in distorted markets, the head of Competition Commission says.


Hong Kong competition law could force prices down, says commission head

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Watchdog's head says the fight against price fixing means consumers will be the winners

Watchdog's head says the fight against price fixing means consumers will be the winners