New competition watchdog needs cash, its chairwoman tells lawmakers
Money for investigations and tough sanctions are vital to level playing field, says chairwoman of body tasked with policing competition laws
The new competition watchdog will lack the bite to take on big business unless it is given a war chest for the battles ahead, its chairwoman warned lawmakers yesterday.
The Competition Commission will police the Competition Ordinance when it comes into full effect next year, but chairwoman Anna Wu Hung-yuk says taking cases to the new Competition Tribunal will not be cheap.
"If we don't have enough financial resources to initiate court cases, it will be difficult for us to carry out our work," she told the Legislative Council's economic development panel. The commission's budget for this financial year is HK$83.9 million.
The ordinance was passed in 2012 after years of debate and is aimed at providing a level playing field by punishing two types of anti-competitive practice: price fixing and market sharing; and abuse of market power.
Wu said success would also depend on the sanctions imposed by the tribunal, which will have the power to fine companies up to 10 per cent of turnover for three years, order damages and disqualify directors.
"If there are not enough sanctions, of course there is not enough deterrent effect … the administration is aware of this," Wu said, adding that the government had given extra funding and discussions would continue.
