A decision to give the telecommunications chief a say in mergers of phone companies has been greeted with reservations by some lawmakers, who fear the move would give the Director-General of Telecommunications too much power to override business decisions.
Under existing rules, he can monitor mergers and acquisitions among the licensees but not their parent companies.
But the Executive Council decided to empower the telecommunications chief to direct licensees to modify their ownership after a merger, should competition in the market be significantly reduced.
At a meeting of the Legco information technology and broadcasting panel, independent legislator Eric Li Ka-cheung expressed reservations over the change. Although legislation targeting holding companies would be necessary in the long run, he said, the move would create uncertainties for proposed mergers.
Referring to the director-general's power to issue guidelines on mergers and to monitor and launch investigations, Mr Li said some administrative arrangements should be turned into regulations to enable Legco monitoring. 'I'm worried that he is too powerful,' said the accounting representative.
Deputy Secretary for Information Technology and Broadcasting Eva Cheng Yu-wah said an independent appeal board would be set up to handle complaints. She said administrative guidelines would provide more flexibility in responding to changing market conditions.
