Understanding Restrictive Practices: Horizontal vs. Vertical Agreements Explained

Описание: [Intro] What stops big businesses from teaming up to keep prices high? In this video, we explore how restrictive practices harm consumers and how the Hong Kong Competition Ordinance works to protect market fairness.
[Key Concepts Covered]
Horizontal Agreements: Learn about harmful cooperation between competitors in the same market, including price-fixing, bid-rigging, and market allocation.
Vertical Agreements: Understanding agreements between buyers and sellers at different levels of the supply chain, such as Resale Price Maintenance (RPM) and exclusive dealing.
Abuse of Market Power: How dominant firms might use predatory pricing or tie-in sales (bundling) to drive out competition.
When Behaviours May NOT Harm Consumers: Discover why some practices, like mergers or certain contracts, can actually lead to economies of scale and lower prices for you.
The Hong Kong Competition Ordinance: A deep dive into the First Conduct Rule (agreements), Second Conduct Rule (abuse of power), and the Merger Rule.
Exclusions & Exemptions: Why some agreements are allowed if they enhance efficiency, and which statutory bodies (like public hospitals) are exempt.

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Quick Case Study: If two competing supermarkets agree to never sell milk below $20, which conduct rule is being violated? Let us know in the comments!
#Economics #CompetitionLaw #AntiCompetitive #HongKongEconomy #Microeconomics #StudyGuide