bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

hooksAmpRedirectArticle

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

paywallTypes

createdDate

publishedDate

sponsorType

urlAlias

moreOnThisArticles

commentCount

authorLocations

authors

corrections

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

articleSpeeches

socialHeadline

headline

images

flag

firstTopic

glossary

flattenTypeIds

image

relatedLinks

relatedNewsletters

__typename

sponsor

pdfFiles

seriesReverseOrder

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

readingTime

customTimezone

liveContents

Ambrose Leung

A drawn-out battle is shaping up over the proposed business competition law, with legislators already expressing fears it may go on so long that it will not be possible to pass the bill before the end of their term in 2012.
Business representatives are complaining that the bill - aimed at creating a level playing field for companies in Hong Kong - is too vague, while expressing concern about possible huge penalties. 
They also continue to question the need for such a law in the first place.
The Legislative Council committee scrutinising the bill has scheduled 37 meetings and public hearings with an expected completion date in April 2012. 
But if lawmakers fail to pass the bill before July 2012, the legislative process will have to be restarted from scratch in the new four-year term that starts in October that year.  
Key among the concerns of businesses is a lack of details of how the law will be enforced. 
Also worrying them is the possibility that companies that breach the law may be fined up to 10 per cent of their total turnover for however long the breach has taken place, according to Hong Kong General Chamber of Commerce insiders.
Committee chairman Andrew Leung Kwan-yuen, the legislator representing the manufacturing  sector, said many small and medium enterprises were concerned the bill would affect their businesses.
'The definitions on market share or monopoly are unclear,' he said. 
Federation of Hong Kong Industries chairman Cliff Sun Kai-lit said the need to legislate should be the main reason for having a competition law. 
He said it should not be enacted just because Hong Kong felt it had to mirror other jurisdictions such as Singapore.
Miriam Lau Kin-yee, leader of the business-oriented Liberal Party, said there was a need for thorough discussions in the coming year or so to  address grey areas.
The Civic Party's Ronny Tong  Ka-wah, deputy chairman of the bills committee, said it would be difficult to satisfy concerns raised by both business and pan-democrat political parties and a compromise had to be made at some stage.
He said: 'Many concerns raised by businesses are actually unnecessary worries. 
'What I am most concerned about is whether anyone will drag on the scrutinising process, which could result in the bill lapsing when this legislative term ends in 2012.'
Tong said his party was prepared to back the bill even if a clause  allowing companies to initiate  lawsuits over alleged monopolistic abuses was dropped to ease business concerns. 
Both the Democratic Party and the Democratic Alliance for the Betterment and Progress of Hong Kong say the bill must be passed in principle and that details can be worked out in the legislative process.
Gerry O'Brien, a senior associate with law firm Mayer Brown JSM, said it was clear from the draft bill that the maximum penalty of 10 per cent of turnover related to a company's worldwide turnover.
Worrying time
Legislators fear they may not pass the competition law before July 2012
The number of scheduled meetings and public hearings on the new law is: 37



Opposition lining up to thwart new law