Tuesday, 2 February 2016

Hong Kong Updates- Privity of Contract & Anti-trust

Privity of Contract
The Contracts (Rights of Third Parties) Ordinance comes into force on 1stJanuary 2016. We will report on this in more detail in our January newsletter but, in summary, the new Ordinance reforms the privity of contract rule that only a party to a contract may enforce it.

Anti-trust
The Competition Ordinance entered into force on 14th, December 2015.

This new legislation makes unlawful arrangements with competitors which could lead to price fixing, including fixing of wages, or other anti-competitive practices such as boycotting of competitors. A significant aspect of the legislation is its application to employment, rather than just to market fixing on the supply side.

Under the Ordinance, there are two key prohibitions, taking the form of "Conduct Rules".

The "First Conduct Rule" prohibits agreements and concerted practices (i.e. cabal-type behaviour) that restrict competition. 

The "Second Conduct Rule" prohibits a business with significant market power from abusing that power through behaviour that restricts competition.

A Commission will oversee the interpretation and application of the Conduct Rules. 

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Primasia will post the updates of Hong Kong and China from time to time. Follow us on our WebsiteBloggerLinkedIn and stay tunned for our updates!

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Need more information?
Please contact:
John Barclay -Email
Teresa Tam - Email 
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