Record companies are moving to increase the price of CDs just days after a new law gave them stronger powers to restrict competition.
Retailers fear that the Copyright Ordinance, which the Government claims is a breakthrough in the fight against pirates, is also being used to raise the price of the genuine article.
Music giant EMI, whose artists include Faye Wong Ching-man and Cass Phang Ling, is adding $8 to the wholesale price of CDs on August 1.
The firm was not available for comment. Retail prices for most CDs vary between $98 and $120.
Karl Li Chi-kau, sales director of Warner Music Hong Kong, whose artists include Sammi Cheng Sau-man, Aaron Kwok Fu-shing and Madonna, said it was also considering a price rise.
The two firms supply almost half the CDs in the territory.
One retailer said: 'What is next? The law is only a few weeks old.' The ordinance, which came into force on June 27, means retailers can no longer buy CDs from wholesalers overseas and sell them in Hong Kong, so-called 'parallel imports'.
