Hong Kong: an open economy that lacks fair competition
There are a number of sectors in which consumers lack choices, the most glaring example being the petrol market
We should not be fooled by Hong Kong’s stellar rankings in international indices of economic freedom. They may reflect the free flow of trade, commerce and information and a free labour market. But they do not mean consumers are assured of free competition. A notable exception is the telecommunications market. In fact the main obstacle to fair competition is often to be found in “free market” opposition from business monopolies, cliques and cartels that dominate markets and prices from property to utilities to basic consumer goods.
The watchdog ruled out collusion between the five main players in the Hong Kong petrol market because there was not sufficient evidence that they had entered into a cartel agreement. But the report, after a two-year study of structural and behavioural issues in the market, revealed some business practices that need explaining by the oil companies.