The Second Conduct Rule prohibits businesses with a substantial degree of market power from abusing that power by engaging in conduct that has the object or effect of harming competition in Hong Kong.
The Guideline on the Second Conduct Rule provides:
- The Competition Commission's approach to defining the relevant market (which also applies to the First Conduct Rule and the Merger Rule).
- Guidance on how to assess whether a business has a substantial degree of market power.
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The Competition Commission's approach to certain types of business conduct, including,
- Below-cost pricing;
- Tying and bundling;
- Margin squeeze;
- Refusals to deal; and
- Exclusive dealing.
- Hypothetical examples to assist understanding of how the Second Conduct Rule will be applied to common forms of business conduct.