Hong Kong Competition Tribunal issues first penalties, fining 10 contractors for market sharing and fixing prices on decorating public housing flats
- Tribunal president Godfrey Lam said the 10 firms restricted competition and ordered each to pay between HK$132,000 and HK$740,000 to government
- They are also required to share the competition watchdog’s costs in taking enforcement action
Hong Kong’s Competition Tribunal handed out its first penalties on Wednesday, fining 10 contractors for “serious anticompetitive conduct” through market sharing and fixing prices for home renovations on a public housing estate four years ago.
Tribunal president Godfrey Lam Wan-ho said the contractors had broken the rules by restricting competition, and ordered each to pay a fine of between HK$132,000 (US$16,900) and HK$740,000 to the government within 28 days.
The respondents were also required to share the Competition Commission’s costs in taking enforcement action. However, Lam gave them a 20 per cent discount as it was one of the first cases and more costs would have been incurred because of the novelty of the law.
Lam previously found the contractors had made and implemented agreements to each decorate four floors in each of the three buildings at Phase 1 of On Tat Estate in Kwun Tong, and to fix the prices of their services, between June and November 2016.
Tenants were directed to designated contractors and provided fliers printed with pricing packages – collectively agreed by the respondents – as the starting point of negotiations.