The Hong Kong Competition Authority brings first court case on resale price maintenance (Tien Chu)

For the first time since the Competition Ordinance came into effect, the Hong Kong Competition Commission (HKCC) has commenced court proceedings against a supplier for resale price maintenance as a contravention of the First Conduct Rule. This case is relevant for nearly all businesses as it touches upon resale pricing and distributor relations, and will have important compliance implications as vertical arrangements increasingly come under the HKCC's enforcement radar. This article outlines the allegations made in this case, what it means for businesses and how businesses can minimise resale price maintenance risks. Background For the first time since the Competition Ordinance (the Ordinance) came into effect, the Hong Kong Competition Commission (HKCC) has brought proceedings in the