Hong Kong Commercial Cleaning Services Limited (HKC) has admitted to engaging in cartel conduct and will pay a penalty of HK$10.96 million (USD1.5 million), following legal proceedings initiated by the Competition Commission (Commission).
The case, brought before the Competition Tribunal in 2021, involved HKC and Man Shun Hong Kong & Kln Cleaning Company Limited (MS). Both were accused of colluding on bids for 17 cleaning service contracts for the Hong Kong Housing Authority (HA) from 2016 to 2018, totaling HK$180 million. The investigation revealed that HKC exchanged sensitive pricing information, constituting a breach of the First Conduct Rule under Hong Kong’s Competition Ordinance.
HKC, along with its directors Ms. Chan Ming Chu and Mr. Cheng Yip Chiu, has admitted liability. In addition to the fine on HKC, both directors face penalties of HK$10,000 each and potential disqualification from serving as directors for 24 months.
The Commission has also requested the Tribunal to recover investigation and legal costs and impose a disqualification order on the involved directors.
The Commission’s CEO, Mr. Rasul Butt, stressed the importance of compliance with competition laws, stating, “This case underscores the duty of company directors to ensure lawful conduct. Businesses must avoid anti-competitive practices and embrace compliance.”
The Tribunal’s determination on the application is pending.
Source: https://www.compcomm.hk/en/media/press/files/PR_Cleansing_services_HKC_EN.pdf
