Hong Kong is set to introduce cross-border competition laws, with the government last week (6 May) kicking off a three-month consultation process.

The consultation, the second on the subject, is set to end on 5 August, with the government then planning to introduce a competition bill during the 2008-09 legislative session.

The legislation is only likely to regulate anti-competitive agreements and abuse of market position and may not include merger control but it will still make a big difference to the jurisdiction – as current rules only cover telecoms and broadcasting.

Clifford Chance Hong Kong-based competition partner Alison Lindsay told Legal Week: "For clients, it will be an interesting time [when the laws come into practice]. A number of larger companies are quite reluctant. It will be educational and surprising to some, as they understand that some of the practices that are [currently] common will fall foul.

"In the most recent proposal, the government has opened up [for debate] merger control laws. For clients this is another regulatory hurdle, so those companies growing through acquisitions are reluctant."

The Hong Kong move follows the news that mainland China is introducing its own cross-border competition laws from 1 August.

The new rules in mainland China have already prompted Lovells to post competition specialist Kirstie Nicholson to Shanghai from Brussels.

Commenting on the new law in China and the Hong Kong proposals, Lovells head of Asia Crispin Rapinet said: "We have yet to see what effect it will have, but it has generated a lot of interest among our international clients in China. [In Hong Kong] they seek views and we are looking at it and will respond to the proposal."

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