TSS_067p131211.indd

E06-07
Liberal Studies
Text: S-File (translated by Jonathan Chong)
The
Photos: iClipart.com, Sing Tao Daily
spirit
Liberal Studies
Tuesday December 13, 2011
This article enables students to:
Hong Kong Today
Personal Development & Interpersonal Relationships
Globalisation
Energy, Technology & the Environment
Modern China
Key ideas
Origin of the law
Competition laws help maintain the
balance between large consortia and
small businesses. These laws protect
SMEs’ rights, but those who oppose them
think they intervene in business operations
Hong Kong’s competition law is based on the US antitrust laws from
When large corporations dominate a
the 1890s. The purpose of setting up such a law at that period was to
market it makes it hard for many SMEs or
tackle the business mergers occurring in the American economy at
private businesses to survive in it. Many
the end of the 19th century, and to undermine laws that encouraged
countries have enacted competition law to avoid this.
inappropriate competition and unfair business acts.
As a financial hub of Asia (亞洲的), Hong Kong will be
Organisations that dominate markets
W
are not formulated. The purpose of competition law is
Supermarkets: Chains such as Wellcome, ParknShop and
to maintain fair competition, but opponents think the
CRVanguard take up most of the market share. When they
law could affect business operations.
into consideration.
Glossary
TV broadcasting: Free local television services have long been dominated
Oligopoly
by TVB and ATV. But the government has now issued licences for three
more free domestic TV services in Hong Kong. Therefore, TV viewers will
have three more channels to choose from.
Hong Kong slow to act
COMPETITION law is to be put in place to protect small and medium-sized enterprises
(SMEs). The law promotes competition and prevents monopolies from arising. The
United States was the first to put forth antitrust laws in the 1890s, which was used to
tackle the abuse of market power by large consortiums. Currently there are quite a large
number of countries with competition laws. As a highly developed and international city,
Hong Kong is a latecomer in terms of competition law legislation.
It is a market form that is driven by a small
number of sellers. Its characteristics include many
Supermarkets and banks belong to an oligopoly, which is a
consumers, who are governed by a small handful of
market driven by a small number of sellers. The establishment of
sellers. The sellers’ products are similar, and yet quality
competition law can not only aid SMEs, but also benefit privately
is different. Other competitors find it hard to enter such
held businesses, for example, a self-owned shop. The law can allow
a market.
individuals to start and operate their own business without facing
behaviour that is not in the interests of a fair and competitive
environment.
Critical questions
1. How can you help privately owned
Public view towards Competition Law and its effects
In actual fact, the Hong Kong government has considered putting a competition law
in place since the mid-1990s. At that time, the government commissioned the Consumer
Council to conduct a series of studies pertaining to industries such as banks, supermarkets,
gas supply, broadcasting, telecommunications and the private residential property market.
The Consumer Council suggested that Hong Kong should introduce extensive policies on fair
competition and establish a thorough competition law. As a result, the Hong Kong government
carried out consultations concerning competition law in 2006 and 2008.
Competition Law
businesses stand a chance against large
consortia?
2. What do you think of the oligopoly of
Hong Kong’s supermarket chains?
For
Against
Reference
1. ‘Speed urged for new Competition Law’,
Abuses the litigation
mechanism
Protects SMEs
Purpose
Increases
consumers’ choices
THE government has been careful to point out that the purpose of competition law is to sustain free competition, not to
restrict the operation modes and methods of companies. Competition law has many benefits and merits, one of which
is safeguarding the rights of SMEs. It makes it hard for large corporations to abuse their market power. To put it more
concretely, competition law allows SMEs to enter the market and stand a fighting chance since it creates a competitive
environment where SMEs can thrive alongside large corporations.
Prevents monopoly
Increases costs
Regulates mergers
March 25, 2011, The Standard
Obstructs foreign
investment
Interferes with
the market
cat=11&art_id=109487&sid=31786752&con_
type=1&d_str=20110325
2.‘Govt concessions on competition bills’, October
19, 2011, RTHK English News, Radio Television Hong
Administrative Region
Improves services
www.rthk.org.hk/rthk/news/englishnews/20111019/
THE government maintains that despite the establishment of competition law, large corporations can still rely on various
means such as price, quality, service and goods selection to compete. But those industries and scholars who are against
competition law think that if the law is set up in too detailed or strict a way, many unimportant legal disputes can ensue.
Not only will it cause people bother and cost extra money, but it may also be a waste of time. Legal disagreements would
also impair normal business operations and thus affect business.
sustain (v) 支撐
www.thestandard.com.hk/news_detail.asp?pp_
Kong, Government of the Hong Kong Special
Opponents of the law
consortium (n) 財團
in a less advantageous position if competition laws
contemplate price changes, they take the other influential competitors
HEN a competition bill was introduced by Hong Kong’s Legislative
Council in July in order to control business practices, it had been a long
time coming. There are some voices in society that urge the prompt
enforcement of competition laws. But others oppose them, worrying
that they could affect their business operations and profit margins. Competition law
strives to promote fair competition, something that everybody in theory should agree
with – so why is there so much controversy surrounding it?
antitrust (adj) 反壟斷的
2. assess qualities, phenomena, changes, trends and impacts
in relation to various aspects of society and culture
Public Health
of competition
y
Vocabular
1. understand important issues facing their own society,
country and the world;
Effects
lowers the prices
Effects
news_20111019_56_791953.htm
3. Competition Policy Advisory Group, Government of
TVB has long dominated the
television market in Hong Kong.
merit (n) 優點
safeguard (v) 保護
Encourages innovation
dispute (n) 爭端
Status as a free
market impaired
ensue (v) 接著發生
the Hong Kong Special Administrative Region
www.compag.gov.hk
oligopoly (n) 寡頭壟斷