• 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

    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.