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Legal Update

Hong Kong Competition Law Series - Part 4: Cardinal Sin No. 2 – Output Limitation

1 April 2015
Mayer Brown JSM Legal Update

Last week we looked at the Cardinal Sin of price fixing. This week we discuss Cardinal Sin No. 2 – output limitation.

Output Limitation
Output limitation refers to agreements between competitors to fix, maintain, control, prevent, limit or eliminate the production or supply of products.

Why Limit Output?
To create a scarcity of supply to increase prices and therefore maximise the profit margin.

Authors

  • Hannah C. L. Ha
    T +852 2843 4378
  • John M. Hickin
    T +852 2843 2576

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