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Competition body to be able to drop cases

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The future commission to review anti-competitive practices will be given discretionary powers to disregard complaints that fail to make a prima facie case, in a measure billed as a safeguard against abuse of the proposed system.

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A source familiar with the subject said yesterday the commission, which is to enjoy statutory powers, will not be obliged to take up every complaint filed against alleged anti-competitive measures by businesses. 'This will hopefully avoid any unnecessary nuisance that may be generated against businesses,' the source said.

Some business representatives, including Liberal Party chairman James Tien Pei-chun, have raised concerns about a general competition policy, saying it would undermine the business environment and scuttle development of small and medium-sized firms. Political parties such as the Democrats and Civic Party supported the move.

The Competition Policy Advisory Group, headed by Financial Secretary Henry Tang Ying-yen, is to submit a report to the Legislative Council's economic services panel today for discussion on July 19.

Written by the Competition Policy Review Committee, headed by businessman Christopher Cheng Wai-chee, the report seeks to launch a major revamp of the government's competition policy, which has in the past only targeted antitrust practices in specific sectors such as telecommunications.

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Mr Cheng's committee proposed an overall competition policy and the establishment of a statutory authority to investigate suspected anti-competitive practices in the business sector.

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