The proposed takeover of PCCW must comply with market competition provisions under the Telecommunications and Broadcasting Ordinances

Both the Telecommunications Authority and the Broadcasting Authority made the announcement today in response to the takeover bid by veteran investor Francis Leung and others.

The telecom authority said it will continue to take all necessary actions to enforce rigorously the provisions safeguarding competition in the telecoms market and to ensure conditions under the carrier licences held by the PCCW group will be complied with.

It will also investigate the ownership change's effects on competition. Should the change greatly undermine the market competition, it may direct the licensee to take action to eliminate or avoid such effect.

As PCCW has two licences to operate TV services, it must apply for prior approval from the Chief Executive in Council if the change in ownership will result in any disqualified person exercising control over it.

The broadcasting authority said this provision aims to safeguard against the risks of media concentration and editorial uniformity.