While Hong Kong awaits the launch of its new competition law next year, consumer advocates are anxiously waiting for regulators to crack down on the supermarket industry.
According to reports, some experts are observing price manipulation, market dominance abuse and other anticompetitive behavior in the grocery industry. The market is lead by two top rivals, Dairy Farm International and AS Watson. The two companies were the subject of a marker inquiry conducted last year by the Consumer Council.
Now, consumer advocates hope the revamped competition regime will help crack down on anticompetitive behavior reportedly running throughout the industry, as calls increase to reign in alleged dominance abuse of the leading supermarkets against their suppliers.
Similarly, reports say, competitors are seen to be pricing their products identically, though competition experts say a proper market investigation by the Competition Commission is largely seen as the only way to evaluate the industry and enforce stronger competition.
Full content: South China Morning Post
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