Hong Kong Updates- Block Exemption Order

The Hong Kong Competition Commission published (on 14^th September) its first proposed BEO (block exemption order). This, if finally issued, will be for various shipping liner shipping agreements. Submissions are invited before such BEO goes final.

A BEO is an exemption from the general principle (first conduct rule) under the Competition Ordinance that competition should not be restricted. A BEO can be issued where improvements in overall economic efficiency outweigh the reduction in competition.

The case in question involves vessel sharing agreements, akin to airline code-sharing) amongst shipping lines. However, additional arrangements (vessel discussion agreements), for which a BEO was also sought, are not being approved by the Competition Commission.


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