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Competition law can apply to statutory bodies

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Amy Nip

It is not necessary to leave statutory bodies completely out of a planned competition law, a legal adviser to the Consumer Council says, as partial exemptions may be workable.

The government had more options than simply adding organisations to a list of blanket exemptions, said Thomas Cheng Kin-hon, head of the consumer watchdog's competition policy committee.

The comments from Cheng, who is also a University of Hong Kong law professor, come as the government consults lawmakers on whether some statutory bodies should be exempted from the draft bill. There are 500-plus statutory bodies in the city, including universities, Ocean Park and the Airport Authority.

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The US and British governments did not exempt statutory bodies from laws promoting competition, Cheng said. Both private and statutory organisations were governed by the same law, though exemptions applied to services of general economic interest - economic activities identified as important to the community.

Such activities can include postal and transport services, the European Commission says. They are determined by courts on a case-by-case basis.

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In France, its La Poste service enjoys a government subsidy but no blanket exemption under the law.

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