HKUST Business School Magazine

Leveraging data analysis With digitization clearly here to stay, the Commission has also made a determined effort to use the latest technology and data analysis techniques to keep pace with change. For instance, in-house economists have begun to use data screening programs to identify suspicious patterns in public procurement processes that may be indicative of anti-competitive conduct like bid-rigging. Of course, technology cannot do everything, and these methods still have their limitations. However, better data analysis definitely helps to point the Commission in the right direction by detecting a possible “smoking gun”, after which the more traditional types of investigative work take place to gather evidence that can, if necessary, be used in legal proceedings. Butt noted that this data-driven approach has been recognized as novel yet effective, even by long- established competition agencies around the world. Collaborating on digital oversight With digital markets evolving so rapidly, the Commission has always emphasized the importance of collaboration – both domestically and globally. “We need to keep abreast of new developments,” Butt said. “Apart from talking to key players, including overseas competition agencies, industry experts, and members of academia, it is also important for us to form strategic partnerships with other government agencies and public bodies which are involved in developing the technology and digital sector. Such collaboration can help us understand how the relevant markets operate, and effectively tackle the competition issues that may arise.” “An example was the successful collaboration with the Hong Kong Productivity Council where irregularities in the applications for a government- backed digital transformation grant scheme managed by the Council were identified and the ensuing investigation culminated in the filing of a case before the Competition Tribunal.” Butt said. Enhancing public awareness and advocacy To keep pace with digitization in other respects, the Commission has also put particular emphasis on the need for public education and advocacy. This has seen the launch of forward-looking initiatives like the “Post to Compete” social media challenge, which aims to engage the younger generation, and the production of a TV drama series based on real-life cases. The broad purpose is to raise overall awareness of competition law and its importance in the digital age, not just among businesses, but also with consumers who are increasingly reliant on digital platforms and services. By combining use of the right tools, partnerships, public engagement initiatives and enforcement strategies, the Commission hopes to position itself as a nimble and farsighted regulator ready to safeguard competition in a digital future. “Market competition is the cornerstone of Hong Kong’s economic success,” Butt said. “We want to ensure that we are in the best position to combat any anti-competitive conduct that might stifle innovation and the emergence of new technologies and services.” Biz@HKUST 22 Cover