- Hong Kong Competition Law Series - Part 4: Cardinal Sin No. 2 - Output Limitation
- May 4, 2015 | Authors: Hannah C. L. Ha; John M. Hickin
- Law Firm: Mayer Brown JSM - Hong Kong Office
Last week we looked at the Cardinal Sin of price fixing. This week we discuss Cardinal Sin No. 2 - 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.