Competition regulation in the Hong Kong telecommunications sector—Challenges and reforms

Abstract

Unlike most developed jurisdictions around the world, Hong Kong has not yet adopted a general competition law. However, starting in the 1990s, the city developed a ‘sector-specific’ competition law regime for the telecommunications sector, but in recent years, the effectiveness of such a regime has been challenged. In response, in March 2006, the government issued a consultation paper proposing the adoption of a unified Communications Authority and a unified Communications Ordinance. Then, in May 2008, another consultation paper was issued advocating the introduction of a general competition law. Thus, Hong Kong is moving away from the existing ‘sector-specific’ competition law in its telecommunication regulation. This article traces the development of the ‘sector-specific’ competition law regime and evaluates its limitations. It then considers the government proposals for the establishment of a unified regulator and a unified law for the entire communications sector. It also assesses whether these proposals of regulatory consolidation can improve competition in the local telecommunications sector. Finally, it argues that the current ‘sector-specific’ regulatory regime has become increasingly ineffective in regulating competition in the Hong Kong telecommunications sector, which can only be remedied by the introduction of a general competition law as advocated by the government in its latest consultation paper.