Thursday, May 3, 2007
Posted by D. Daniel Sokol
Mark Williams makes the case in an op-ed in the Financial Times on Why Hong Kong Needs an Antitrust Regime. I agree with Mark. Hong Kong faces market failures because of highly concentrated markets that allow incumbent monopolists to create barriers to entry. An antitrust system can help facilitate a more competitive market.
An antitrust agency can also help to prevent private firms from using government to shield anti-competitive conduct through competition advocacy. I just made suggested revisions a chapter for my forthcoming book on Latin American Antitrust Developments in which Todd Zywicki of George Mason Law School draws upon the US experience to illustrate the importance of competition advocacy and how it can work in Latin America. You can download Todd's draft here. Todd's paper has equally important implications for Hong Kong on the importance of an effective competition advocacy program.