Competition Law

The Chamber welcomes the Commission’s proposals to extend the Block Exemption for Vessel Sharing Agreements) Order 2017 (“the Order”). At the same time, we continue to advocate for the extension of the Order for five years, as well as the removal of the market share limit for vessel sharing agreements currently imposed under the Order.

The Chamber supports the extension of the Competition (Block Exemption for Vessel Sharing Agreements) Order (“the Order”) in its current form for another term of five years. We believe that the existing Order and proposed period of extension will provide a stable and predictable regulatory environment for and in sustaining the competitiveness of Hong Kong’s shipping and logistics sector– a major pillar of our economy. We also continue to advocate for the removal of the market share limit for vessel sharing agreements currently imposed under the Order for the reasons set out in our response.

The Chamber has raised concerns over the contents of the Model Non-Collusion Clauses and Non-Collusive Tendering Certificate published by the Competition Commission in December 2017 and has suggested possible solutions to address these concerns.

The Chamber has suggested the need for a more thorough evaluation on the impact of granting (whether in full or partially) or dismissing the Hong Kong Liner Shipping Association’s application for a block exemption order. The Chamber also expressed concerns over the Competition Commission’s approach to the application process.

The Chamber supports the Hong Kong Liner Shipping Association’s application for a Block Exemption Order with respect to Vessel Sharing Agreements (VSAs) under the Competition Ordinance. The Chamber also supports the exemption of Voluntary Discussion Agreements (VDAs) if it can be shown that any harm this may bring is clearly outweighed by efficiencies, which benefit Hong Kong.

To prepare for the Competition Ordinance coming into effect on 14 December, the Chamber has compiled a Code of Conduct to help members comply with the law. Businesses should review their agreements, policies and practices to ensure they do not fall foul of the Ordinance.

Under the Draft Cartel Leniency Policy, the Commission will agree not to bring proceedings in the Tribunal for a pecuniary penalty against the first cartel member who reports the cartel conduct to the Commission and meets all the requirements for receiving leniency under the policy. The Chamber’s comments to the Commission’s proposals are given in the link.