The Bill aims to promote fair and effective competition in the market to protect consumers' interests as well as to help businesses to make informed decisions on mergers and acquisitions.
Speaking on the draft law, a spokesman for the Information Technology and Broadcasting Bureau said the Bill was a major step forward in enhancing competition in the telecommunications market that would be necessary to strengthen Hong Kong's position as an information technology and telecommunications hub in the region.
Under the bill, the Telecommunications Authority (TA) may direct a carrier licensee to take such actions as the Authority considers necessary to eliminate any anti-competitive effect if the Authority considers that a change in the ownership or control over a carrier licensee has, or is likely to have, the effect of substantially lessening competition in a telecommunications market.
Alternatively, a carrier licensee may also seek the prior consent of the Authority on a voluntary basis to the proposed change in ownership or control.
"This will give a choice to the carrier licensee whether to seek consent taking into account the risk of being penalised subsequently if the activity is found to be anti-competitive," the spokesman said.
Carrier licensees include the local fixed telecommunications network services operators (including TV broadcasters who own or operate transmission facilities), external fixed telecommunications network services operators, mobile operators and satellite operators.