Wednesday, July 14, 2010
Posted by D. Daniel Sokol
I have not read the Hong Kong draft law and so I cannot comment as to the specifics on the law. However, this op-ed that appeared in the Wall Street Journal titled Competition Law and (Dis)order seems to lack a basic understanding of competition law and economics and takes broad swipes at antitrust more generally. The reason why trade open economies have competition laws is because the non-tradable sectors may have lots of cartels and lots of abuse of dominance problems. Even if you are a libertarian (which the op-ed author seems to be), you should recognize that a naked cartel hurts consumers and that the possibility of false positives for such cartels is very low.
From what I can tell, the relatively new Singapore Competition Commission has done exceptionally well in its short existence. You do not see businesses fleeing Singapore because of the competition law.