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190223 charles mok hku mpa (1) (1)

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Complexities and Challenges in Regulating 'Sharing Economy'
For HKU MPA class
Feb 23 2019

Publié dans : Droit
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190223 charles mok hku mpa (1) (1)

  1. 1. Complexities and Challenges in Regulating ‘Sharing Economy’ ​Charles Mok Legislative Councillor (IT) 2019-2-23 @ HKU MPA sharing
  2. 2. Conceptualizing the sharing economy Peer-to-peer (P2P) based activity of acquiring, providing or sharing access to goods and services that are facilitated by a community based on-line platform that allows individuals and groups to make money from underused assets - physical assets are shared as services 2
  3. 3. Conceptualizing the sharing economy 3
  4. 4. 4 Source: PwC
  5. 5. Evolution of ‘Sharing Economy' Expanding to cover... ▰ Co-working Platforms ▰ Peer-to-Peer Lending Platforms ▰ P2P Fashion Platforms ▰ Freelancing Platforms ▰ B2B transactions 5
  6. 6. Evolution of ‘Sharing Economy' 6
  7. 7. Evolution of ‘Sharing Economy' Expanding to cover... ▰ Co-working Platforms ▰ Peer-to-Peer Lending Platforms ▰ Home Chef Platforms ▰ P2P Fashion Platforms ▰ Freelancing Platforms ▰ Pet Sitters Platform 7
  8. 8. Upside 8
  9. 9. Conflicting interests Dissecting the impact of ‘sharing economy’ business models ▰ Consumers ▰ Companies ▰ Labour force associated with online platforms ▰ Competitive framework ▰ Society 9
  10. 10. Consumers
  11. 11. Legitimate concerns of consumers ▰ Are my ride-hailing trips covered by insurance? ▰ Will I be safe in a short-term rental apartment? ▰ What if I got food poisoning from a meal with amateur home chef? ▰ Who can I seek help from if things go south with the driver/host? 11
  12. 12. Examples: Short-term rental 12
  13. 13. Examples: Ride-sharing 13
  14. 14. Lack of clarity and certainty Who should be held responsible for problems that might arise when entering into a transaction? Responsibilities of each party involved in transactions are not usually well defined
  15. 15. Providers of services/goods Drivers, hosts, gig-economy workers get extra income, but are they ‘employees’, ‘partners’ or ‘contractors’?
  16. 16. Examples: Ride-sharing 16
  17. 17. Examples: Short-term rental 17
  18. 18. The fight for labour rights 18
  19. 19. Action of online platforms Lack of transparency, price-fixing, ethical issues?
  20. 20. Price transparency 20
  21. 21. Platforms dodgy practices? 21
  22. 22. Competition landscape Impact to existing industries
  23. 23. Existing industry players face lost of business, competition with ‘sharing economy’ 23
  24. 24. Unintended consequences?
  25. 25. Nuisance to neighbours, drives up housing prices/rent? 25
  26. 26. Impact to transport and roads? 26
  27. 27. “Current regulations are not well-equipped and fully adapted to handle issues from ‘Sharing Economy’ business models. 27
  28. 28. “ 28
  29. 29. 29 HK: Closing in on ride-hailing
  30. 30. Under the current law, premises that offer sleeping accommodation for a fee for a period of less than 28 days must be licensed. Hotel and Guesthouse Accommodation (Amendment) Bill: the Authority would be empowered to crack down on short-term home rentals and unlicensed hotels and guest houses. ▰ Strict liability offence: owners of premises will be criminally liable if there was evidence showing their flats were used for the illegal trade without a statutory defence. ▰ Maximum fines for operating unlicensed guest houses would be increased from HK$200,000 to HK$500,000 and imprisonment increased from two years to three years. ▰ search warrant to allow officers to break into and raid flats suspected of being unlicensed holiday rentals. 30 HK: tougher law on short-term accommodation
  31. 31. “Innovation vs Disruption? Besides banning ‘Sharing Economy’ … what are the alternative approaches? 1. Studying its impacts, costs and benefits in more detail 2. Introduce compliance requirements and regulatory obligations 3. Level the playing field with existing industries 4. Engage the public to determine the way forward 31
  32. 32. 32
  33. 33. 33
  34. 34. 34
  35. 35. 35
  36. 36. Will Hong Kong be able to find the right balance? To take a step towards smart regulations to protect consumers, labour force, competition and the interest of society
  37. 37. Thanks! Follow me at ▰ Twitter @charles mok ▰ fb.com/charlesmokoffice ▰ www.charlesmok.hk ▰ charlesmok@charlesmok.hk 37

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