We are committed to promoting competition to enhance economic efficiency and free trade, thereby benefiting consumers.

We adopt a comprehensive competition policy --- one that seeks not only to discourage restrictive business practices but also to encourage competition; that relies not only on legislative controls but also on guidelines or codes of practice; and that focuses not only on the practices of the private sector but also the public sector.

We encourage competition. We do not protect or subsidise traders or manufacturers and there are virtually no barriers to market access for local and international traders and manufacturers. To discourage unfair business practices, safeguard competition and protect consumer interests, however, we have put in place a package of legislation such as the Consumer Goods Safety Ordinance, the Unconscionable Contracts Ordinance, the Supply of Services (Implied Terms) Ordinance, the Sale of Goods Ordinance and the Trade Description Ordinance.

In very special circumstances, an apparently monopolistic or oligopolistic situation may exist --- where, for instance, a very high level of investment is involved, prudential supervision or efficient regulation is required, or the long-term interest of consumers is at stake. In these circumstances, the government will ensure that the quality of service and the price that consumers are paying are not compromised.

We periodically review the various control mechanisms to ensure they will meet the needs of prevailing circumstances. Where possible, we will undertake liberalisation initiatives to promote competition in these areas.

Our competition policy is in line with our free trade and open market approach and has a pragmatic and sector-specific flavour. We aim to promote competition and create market conditions which will enhance the competitive process and economic efficiency in Hong Kong.

All government bureaux and departments are required to consider the impact of their policy proposals on competition and review their existing policies and established practices from the viewpoint of competition policy.