Watchdog sets sights on trade price-fixing
Association deals not allowed regardless of how long practice has been in place, says official
Price-fixing by trade associations is unacceptable and could be an early focus of Hong Kong's new competition law, a senior member of the watchdog team said yesterday.
Senior executive director Rose Webb, who joined the Competition Commission four weeks ago, did not divulge which types of businesses it would investigate when the competition law comes into full effect, but said pricefixing by trade associations was one of the first targets when a similar law was introduced in Australia.
Her comments followed reports of trade unions of gold retailers and chicken sellers setting "recommended prices" among members. Gold traders agreed on a daily price to apply in all retail outlets, the reports said.
Webb said, according to her experience in the Australian Competition and Consumer Commission, it was extremely difficult for a trade association to get an exemption for fixing prices of consumer goods.
She said that while the commission's priority was to explain the rules to correct lawbreaking practices - before the law comes into full effect - prosecutions would be the next step.
"People have misconceptions about what they can and cannot do," she said.