Inaugural training course helps further enhance SMEs' competition compliance in Hong Kong
- The “Competition Compliance Training Course”, launched by the Competition Commission, offers comprehensive guidance on competition law as well as risk assessment.
- The course builds upon the online resource platform, “SME Hub”, introduced by the Commission in January.
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Ensuring lawful operations and compliance to mitigate legal risks is fundamental to companies’ long-term growth and development. However, many small and medium-sized enterprises (SMEs) in Hong Kong, constrained by limited resources, find it particularly challenging to implement effective compliance measures, especially for laws that do not appear to be straightforward. Recognising these difficulties, the Competition Commission has introduced the "Small and Medium Enterprise Competition Compliance Hub" (SME Hub) earlier this year.
To bolster its support for SMEs in the area of compliance, the Commission is launching its inaugural competition law compliance training course this June. This initiative is highly anticipated by SME representatives, with the expectations that the training will help businesses mitigate the risk of contraventions.
A decade of law enforcement
The Competition Ordinance came into full force in Hong Kong in late 2015. The Commission has stepped up its enforcement efforts ever since, bringing before the Competition Tribunal 15 cases involving 48 undertakings and 24 individuals across various sectors. All eight cases resolved to date have ended in favourable outcomes for the Commission.
In addition to litigating cases, the Commission has utilised non-litigation remedies in six cases securing commitments from parties involved or issuing infringement notices. These proactive measures are designed to halt anti-competitive behaviour and ensure robust safeguards are in place to prevent future contraventions.
Targeted Online Resources for SMEs
Promoting compliance among local businesses, especially SMEs, is one of the Commission’s core missions. A recent survey conducted by an independent research agency, involving 600 companies of various sizes, revealed that more than 80 percent of companies surveyed demonstrated basic knowledge of the Ordinance and cases handled by the Commission. However, less than one in four SMEs had implemented compliance measures or provided staff with training on competition law.
.jpg?itok=K_jI2d6L "President of the HKSMEA, Andrew Kwok Chi-wah.")
Resource limitations have posed significant hurdles for SMEs. President of the Hong Kong General Chamber of Small and Medium Business (HKGCSMB), Michael Lai Cheuk-pun, pointed out that resource constraints, including manpower, put a cap on many SMEs’ efforts in establishing robust competition compliance frameworks. He explained, “In Hong Kong, businesses are grappling with many regulations, making even straightforward online research a time-consuming task.”
Since inception, the SME Hub has received favourable feedback from its target audience, with approximately 3,000 visits recorded. Lai commended the SME Hub for helping SMEs navigate the complexities of the Ordinance and heightening compliance awareness; while Kwok noted positive feedback from a number of HKSMEA members, highlighting the platform’s content helps address up to 90 percent of SMEs’ compliance needs.
As the next step after the introduction of the SME Hub, the Commission is poised to launch its inaugural “Competition Compliance Training Course” in 2025, tailored specifically for the needs of local SMEs. Scheduled for mid June, this in-person session aims to provide foundational knowledge of the Competition Ordinance, detailed case studies, and practical guidance on leveraging the SME Hub’s resources effectively.
The training complements the online platform by offering SMEs the opportunity to engage directly with the Commission’s competition experts. Through these engagements, participants can discuss their compliance concerns and explore actionable strategies to adhere to the Ordinance. Participants will also be awarded a certificate of attendance upon completing the course. The first training session will be conducted in collaboration with various SME chambers, and places will be assigned on a first-come, first-served basis. The initiative will continue if demand warrants.
Lai of HKGCSMB hailed the training as a critical step in boosting SMEs’ compliance efforts. He noted that both the SME Hub and the training course would offer much-needed clarity on competition law, particularly through relevant case studies.
Kwok of HKSMEA shared Lai’s enthusiasm about the training, expressing optimism about participation from members of the SME community.
Sustained Support for SMEs
SMEs are the backbone of Hong Kong’s economic strength and resilience. Gary Shiu Moon-cheung, the Commission’s Executive Director for Policy and Advocacy, underlined the importance of empowering SMEs with a thorough understanding of the Competition Ordinance, which remains a cornerstone of the Commission’s advocacy initiatives. “Over the years, we have implemented various initiatives to engage the business community and promote competition law awareness. Through the SME Hub and the upcoming Competition Compliance Training Course, we take a further step to directly equip SMEs with the tools to prevent anti-competitive conduct, thereby fostering a fair and competitive marketplace,” he stated.
For more details on the Competition Compliance Training Course, please call 3462 2118 or email [email protected].