Three World Book and Card: Is the Fair Competition Law a Good Way?
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Mao Fengxiong, Zheng Xiongxiong:
At the end of last year, the Hong Kong Government intends to ensure that all walks of life can compete in a fair environment and draft a "fair competition law". It will be consulted by the public from November 2006 for a period of three months. It is still necessary to submit a bill to the Legislative Council for debate before it can become Hong Kong law.
Before making an individual opinion, I would like to briefly introduce the spirit of this bill and its contents for discussion: Hong Kong has been calling itself a free port for more than 100 years. The colonial government also encouraged and supported free trade, except for luxury goods. Almost all of the export goods were not subject to customs duties. In the 1960s, a financial secretary of the British Hong Kong Government, Guo Bowei, first proposed the policy stance of "actively interfering with market operations." In the same year, the British Labor Party government would lose money at the private sector to prevent unemployment. The state-owned policy of the enterprise can be said to be in the south, and it turns out that he has done the right thing. It is wrong for the British government to subsidize the loss-making enterprise with public resources. The successive Financial Directors also Xiao Cao Cao Sui, so that the commercial society of Hong Kong is free to operate, without the administrative intervention of the government, nor does it support public support for a declining industry, so that it can naturally weaken and stay strong and seek a way out.
When Guo Bowei’s policy was appreciated by world-renowned economists, Professor Fu Limin, a well-known economist, publicly praised Guo Bowei as the planner and defender of Hong Kong’s economic take-off and fair trade. After the reunification of Hong Kong, the SAR Government seems to be too good and happy. It is eager to reform and violates the principle of active non-intervention. After ten years, it is discovered that the original resource mismatch has caused the public to rise. The Cyberport, the 850,000 housing policy and the West Kowloon Cultural Entertainment Projects such as the Center and the Chinese Medicine Port have been severely criticized by the public. Some projects have been forced to shelve. Public opinion generally believes that the government's use of public resources to safeguard the interests of small-scale developers seems to violate the principle of fair competition and the so-called positive non-intervention of the government.
In December 1997, the Government established the "Competition Policy Advisory Committee". In May 1998, the "Competition Policy Framework" was launched. It is hoped that the industry to deal with certain vicious competitions seems to be another means of the Hong Kong Government's administrative intervention in the market. According to the public explanation of the Chief Executive, the fair competition law is used to maintain market order, prevent "circumstances", that is, multiple competitive group contract pricing to control public bidding, large groups to divide the market by themselves, manipulate prices, and so on. The Hong Kong business community has responded cautiously to the consultation documents. The pros and cons of the two sides have also been raised by the Chamber of Commerce. Just like other government policy advisory documents, most people are still indifferent if they have not passed the debate in the Legislative Council. The "Hong Kong Competition Policy Future Directions Consultation Document" covers the following seven specific categories of anti-competitive behavior: manipulation of prices - the commercial competitors through agreements to increase or maintain the price of goods or services, distort the normal operation of the market, so that buyers Or consumers pay a higher fee.
For example, the price of gasoline in Hong Kong, often many oil companies announced a fare increase on the same day, the increase is almost exactly the same, it seems that there is suspicion of price manipulation, and now only the government to check whether the oil company agreement to increase the price, but if the law is passed, the judicial department Investigations and prosecutions are available.
Collusive bidding – Prior to bidding, a number of company agreements allocate contracts, stipulate bid prices, and ensure that a company must win the bid at a specific price. Under the agreement, each company rotates the bid, each has its own income and guarantees that the price is not due to competition. Under pressure.
Public tenders are mostly public works of government projects or government-sponsored voluntary agencies. Most of them involve public funds. If there are collusive bids, public funds can cause losses.
Distribution market – Inter-company mutual agreement or custom rules are divided into different categories according to different types of factors such as region, market category and corporate customers, which reduce competition or make competition disappear. Consumers therefore have to pay higher fees. For example, some large housing estates in Hong Kong only allow companies under the property development or related companies to provide security guards, cleaning, internet, cable television, gas and other supply and services. Custom rules prohibit competitors from providing similar services to tenants. The residents have no choice and have to pay a higher fee.
Formulating sales and production quotas – refers to the agreement between manufacturers to determine the production and sales of certain types of products, and artificially manipulate the supply and demand to obtain higher profits.
Non-public products that may be manipulated in Hong Kong are most likely to be properties and real estate. Several large real estate developers have been able to successfully control real estate supply and property prices, especially the so-called luxury market. In the past and present, public patents, such as electricity, telecommunications, buses and tunnels, although they are also commercial enterprises, they have obtained government-guaranteed profits and exclusive licenses. Commercial enterprises have the highest ceiling for government-licensed profits. In return, sales and production quotas will be set so that the charges cannot be lowered and the interests of consumers are harmed.
Boycotts – Inter-competitor agreements or coercion trades do not deal with certain suppliers or customers, or agreements with suppliers or customers that are not affiliated with a competitor.
In the past, there have been joint operations in the industry. For example, there have been calls for the purchase of goods from a certain country or region. Such national passions are illegal after legislation. There have also been publications of offensive content and indecent pictures in a particular publication. Under this Ordinance, the public may not be called upon to buy. Commercial opponents, even if they are accused of bad debts and fraud, cannot confess that their peers do not trade with them.
Unfair or Discriminatory Guidelines – Agreements between companies on technology or design standards may hinder competition and prevent other competitors from entering the market.
For example, the Medical Association may refuse to register and practice doctors from other countries or regions, or require doctors to write prescriptions in English may also break the law. If this legislation is passed, the "Hong Kong Offset Printing Specification" may interfere with the law and may violate the law.
Abuse of market dominance – when large companies occupy a dominant position in the market, they use their financial resources and influence to prevent and hinder competitors from entering the same market, for example, selling at below cost to smash competitors, or Bundled sales to weaken the competitiveness of the opponent.
The Hong Kong supermarkets used to sell fresh meat at a lower cost than the ones, with the intention of monopolizing the retail of fresh meat. They were protested by traditional vegetable market dealers. There was a turmoil in the past. Similar situations still existed, making many small shops unable to operate.
The Fair Competition Law is also known as the Anti-Monopoly Law. It has a long history and experience in advanced countries in Europe and America. Like the rise of the Internet, Netscape, a small-scale browser company in the United States, used the anti-monopoly law to sue the value of Microsoft. Therefore, Microsoft needs to pay huge compensation and open the browser, which is a sensational case. Earlier this year, the European Commission announced that it had severely punished five internationally renowned lift groups for nearly 1 billion euros. Five famous brand lift companies including Germany, Japan, Finland, Switzerland and the United States were accused of manipulating prices in Europe, violating fair competition laws. Was severely punished.
It seems that the government is keen to introduce a fair competition law. It is hoped that it will be linked to other advanced countries in the world in legislation and cite foreign legal models to reform and promote fair competition in the commercial society. Is this a good medicine or a lot of unpleasant side effects? With the invisible hand of the government, stir up the pool of water in the market? Although there is still no legislation, the Hong Kong Government has taken administrative measures to gradually open up the franchise market, such as open bidding for fixed-line telephones and portable wireless telephone communications, and licensing more cable and wireless television broadcasts. Get more services and options at a lower cost. In fact, there are still many franchised businesses in Hong Kong that are not open, including the collective railway transport system and the three tunnels and one bridge traffic toll system. The Hong Kong Government has not yet fully opened its franchise business. The Fair Competition Law is still in vain. And hey.
When the younger brother worked in the printing of Japan, he learned that the two Japanese companies had been posting money to customers for a long period of time, and the account period was as long as 180 days. At that time, the two rumors in the industry claimed that the two Japanese companies had used the wounded to monopolize the market. The small family-run family business did not have a fair competition law at the time. Small enterprises did not collectively appeal to the society or the government. In the past few decades, Great Japan has withdrawn from Hong Kong, and the letterpress has not dominated the world. Instead, some small and medium-sized enterprises have rapidly developed into listed companies. Under the free economy, fair competition law is not necessarily beneficial to small companies, and is not necessarily harmful to large companies. The fair competition law looks like a goddess of justice, but it is a two-faced blade that can both hurt and hurt others. Once the various branches of the industry are in law, there is no end to litigation. Is the fair competition law weak or weak? ? Or if the competition fails in the market, it will be pursued in the courts. As the gamblers call the "winning and winning"?
After reading the instructions of the younger brother, what are the two high opinions? I also hope that this book will attract the attention of Hong Kong peers, participate in discussions and take a serious look at the consultation documents issued by the government.