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Hong Kong Watchdog Unveils Compliance Tool for Small Businesses

By  |  January 21, 2025

Hong Kong’s Competition Commission has introduced a new website to assist small and medium-sized enterprises (SMEs) in understanding and adhering to the Competition Ordinance. The move comes in response to a recent survey revealing that only 24% of SMEs had implemented compliance measures or training, highlighting a significant knowledge gap in the business community.

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    According to a statement from the commission, the survey found that over 70% of respondents believed the ordinance could help reduce anticompetitive practices. However, many SMEs lacked the resources and knowledge to ensure compliance. Gary Shiu Moon-cheung, the commission’s executive director, emphasized the need for action, noting that feedback from SMEs and the survey results underscored a widespread lack of clarity about the law.

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    “Through regular meetings with SMEs and the recent survey … we realize that some enterprises may not be able to effectively put in place measures of relevant compliance,” Shiu said on Tuesday. He also acknowledged that smaller businesses often lack the legal and consulting resources available to larger corporations, making it harder for them to navigate the ordinance.

    The newly launched website aims to address these challenges by providing comprehensive tools and information. It includes four key sections: an overview of the ordinance, a risk assessment guide, resources to help SMEs identify anticompetitive practices, and a compliance program template. These resources are designed to clarify the ordinance and dispel misconceptions, per the commission’s statement.

    The survey, conducted between late 2023 and 2024 by an independent research agency, included responses from 1,000 individuals aged 18 to 65 and 600 businesses of various sizes. Findings revealed that while 73% of individuals viewed the ordinance as relevant to them as consumers, only a quarter of SMEs had taken steps to comply with it.

    Shiu reiterated the commission’s commitment to supporting SMEs, stating, “We felt there was more we could do to help with the implementation.” The new website aims to bridge the knowledge gap and equip businesses with the tools they need to foster fair competition in Hong Kong.

    Source: SCMP