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►Text : Lon Yan
News in Liberal Studies
►Photo : Bloomberg
Friday
18 December 2015
Hong Kong Today
New law sparks phones price war
The new Competition Ordinance is causing shops to drastically cut prices of smartphones.
S
HOPS cut prices of smartphones by up to
price restriction between companies operating
20 percent in a rare price war ahead of the
at a different level of the distribution chain. The
Competition Ordinance (競爭條例), which
Competition Commission said such conduct may
took full effect on Monday.
背
景
資
料
《競爭條例》生
效前夕，有大型
(Bloomberg)
Competition Commission chairman Anna Wu
have the object of harming competition.
Over the weekend, electronic chain Fortress
電器連鎖店宣
Hung-yuk (競爭事務委員會主席胡紅玉) warned
was offering up to 20 percent discount on selected
佈，多款熱門手
that the law would come down hard on offenders,
popular brands of smartphones. Other major
機「劈價」低至
including those who engage in price fixing and bid
retailers quickly followed suit with some slashing
八折，其餘數間
rigging.
prices for certain phone models by over HK$1,000.
電器連鎖店隨
即跟著減價。電
子產品零售商一
向跟產品供應商
的建議零售價，
但這種做法可能
已觸犯《競爭條
例》禁止的「操
控轉售價格」行
Before the competition law’s implementation,
Companies with substantial market power
electronic retailers had an understanding among
are banned from predatory pricing – setting prices
themselves that they would sell products according
so low that they deliberately make a loss to force
to the suppliers’ recommended price
its competitors out of the market. However, it is
Hong Kong Consumer Electronics Alliance
president Fong Po-kiu (香港消費電子產品聯盟
uncertain if any of the chains have that power.
University of Hong Kong assistant law professor
為。條例禁止行
主席方保僑) said this could be seen as a type
Kelvin Kwok Hiu-fai said the effect of the law will
為亦包括合謀定
of resale price maintenance – a type of vertical
lower prices in the long run.
價、圍標和略奪
(The Standard, 14 December, 2015)
性定價等。
@
P02-03
Website
What is competition?
goo.gl/GZe9u7
@
Website
Anna Wu – Letter to Hong Kong
goo.gl/1P4Hbb
LS in action
Worksheet
6 terms to know
A
offender (n) 違法者
True, False, or Not Given
State whether the sentences below are true (T), false (F), or not given (NG).
Offenders of the law will be severely punished.
1. Offenders will not be punished in the early stage of implementing the
implementation (n) 實施
competition law. ___
It is important we work out details of the implementation
2. Retailers raised phone prices to beat the Competition Ordinance. ___
of our plan.
3. Competition law will make goods prices come down. ___
recommended (adj) 建議的
4. Businesses are permitted to set prices as low as they want, even if at a
When taking medicine, you should follow the
loss. ___
recommended dosage.
slash (v) 割；大幅削減
The company has slashed costs due to falling revenue.
B
Mind map
Please complete the mind map below to explain the news article.
substantial (adj) 可觀的
The manager has made substantial contributions to the
company over the years.
Bans: price 2. ________
Bans: bid 3. ________
uncertain (adj) 不確定的
The country is facing an uncertain future.
The 1. ________ Ordinance
comes into effect on 14 Dec.
Writing tips
Maintenance means preserving a condition or situation
– The UN plays an important role in the maintenance of
world peace.
Bans: predatory 4. ________
The word also means the work of keeping something in
proper condition.
Results in: 5. ________
prices in the long run.
– You must pay attention to the maintenance of your
car for the sake of safety.
Answers on P12
Maintain is a verb meaning to keep up or carry on
– The two countries have been trying hard to maintain
a cordial relationship.
C
Critical thinking
It also means to state something strongly.
1. Why do we need a competition law?
– The accused maintained his innocence on the witness
stand.
2. What would happen in a market with no competition? Who will suffer?
Maintenance crew refers to a team of people who do
maintenance work
– We need to call in the maintenance crew to fix the
clogged pipes.
3. Is there real competition in Hong Kong’s free television market? Has television
programme quality been getting better over the years?
4. If a land developer who also runs a pay television service bars other pay TV
services from its estates, is that anti-competitive conduct?
5. Do you agree with the statement: “A competitive market leads to better prices,
products and choices for everyone”?