Less than a quarter of small to medium-sized companies in Hong Kong have taken adequate steps to make sure they don't fall foul of competition laws, a watchdog warned on Tuesday, adding that it has come up with a new website to help firms get the information they need.

The Competition Commission said a survey of around 600 companies it carried out from late 2023 to 2024 found only 24 percent of SMEs had policies in place to ensure they complied with competition regulations.

"The survey results suggest that the SMEs have a quite good understanding of the Competition Ordinance. At the same time, we realise they have some confusion on some details regarding the law. We found out that they may not have the necessary resources to implement compliance plans within the company," said Gary Shiu, an executive director of the commission.

Shiu said larger enterprises have the resources to hire professionals to provide advice on the matter, while smaller companies that don't have the money are at a greater risk of breaking the law.

The new platform, SME Hub, highlights key aspects of the ordinance and has an assessment tool for identifying potential risks with business activities.

Shiu said it also includes real-life scenarios or hypothetical examples to bust common myths surrounding the ordinance.

"All enterprises have some misunderstanding concerning being part of a cartel agreement or price-fixing agreements. They would always think that as long as there are no anti-competitive effects or any negative effects in the market, then why would they infringe the law?" Shiu said.

The watchdog said it will also be organising talks and training for SMEs on implementing internal guidelines for the ordinance.

Andrew Kwok, who chairs the Hong Kong Small and Medium Enterprises Association, said limited resources is not the only challenge when it comes to implementing relevant guidelines.

"The lack of expertise, and being uncertain about the ordinance requirements make it difficult to lay out internal policies. If the details [of the law] are too complicated, SMEs may need to consult relevant lawyers for clarification," he said.

Kwok agreed that the new website can help SMEs understand the ordinance more thoroughly.

"Some SMEs may have a basic understanding, but most do not fully understand the [ordinance] terms in detail and what it implies. The launch of the SME hub provides resources and guidance tailor-made for SMEs," he said.