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Guideline on the First Conduct Rule

The Guideline on the First Conduct Rule

The First Conduct Rule prohibits businesses from making or giving effect to an agreement, engaging in a concerted practice, or making or giving effect to a decision of an association, if the object or effect is to harm competition in Hong Kong.

The Guideline on the First Conduct Rule provides:

  • An overview of key concepts used by the Competitiion Commission (Commission) in relation to the First Conduct Rule.
  • The Commission's approach to various types of business conduct, including,
    • Price fixing, market sharing, bid rigging and output restrictions;
    • Resale price maintenance; and
    • Joint ventures, joint tendering, franchising and distribution agreements.
  • A wide range of hypothetical examples to assist understanding of how the Commission applies the First Conduct Rule to common forms of business conduct.