Construction companies ‘made turf deal’ on subsidised housing estate, according to Hong Kong’s competition watchdog
Competition Commission has accused Kam Kwong Engineering Company, Goldfield N & W Construction Company and Pacific View Engineering as well as two directors of distorting fair competition in a way that amounted to ‘serious anti-competitive conduct’
Hong Kong’s competition watchdog on Thursday filed a court action against three construction companies and two directors over a market-rigging scheme on a government-subsidised estate in San Po Kong.
It was the first time the Competition Commission had sued individuals rather than the companies involved, and the second time it had targeted under-the-table behaviour at residential projects.
According to the court writ filed on Thursday, Kam Kwong Engineering Company, Goldfield N & W Construction Company, and Pacific View Engineering split the renovation work in 857 units at King Tai Court among themselves. At least 178 units were said to be involved to date.
The three companies marked their territory by claiming floors, so when residents on a different floor approached them, they turned them down.
They provided similar quotations, and listed the same services, in packages they tried to sell to residents who had bought homes from the Housing Authority, the court document showed.