Penalties at stake: leniency policy differs between Hong Kong's competition watchdogs in enforcing same law
Main enforcer and key regulator at odds over tactics to combat anti-competitive conduct amid fears over punishment confusion
Hong Kong's key competition watchdogs are locked in a tussle over the level of punishment that should be meted out to those who breach the rules.
A battle of wills is looming after the Competition Commission outlined plans to get tough on anti-competitive behaviour by introducing a blanket policy of leniency towards whistleblowers while the Communications Authority wants a "case-by-case" approach.
The commission is seeking cartel members' cooperation to expose their own covert practices, such as price-fixing and bid-rigging.
The opposing positions raise questions about fairness in applying the law, which will take full effect on December 14, and whether whistle-blowers may be encouraged to act.
The divide appeared yesterday after the authority spelt out its conservative stance in making any leniency pacts with telecommunications and broadcasting licensees.
"With the accumulation of enforcement experiences under the Competition Ordinance, the Communications Authority will … revisit at a later time the need or otherwise for it to adopt a leniency policy," a spokesman for the authority said.
On the same day, the commission unveiled its leniency policy, intended to discourage continued cartel conduct and the formation of cartels.
