Guideline on the Second Conduct Rule

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.

This link will open in a new window 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.
• 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.