Six Hong Kong hotel groups, tour operator caught passing on information to price-fixing travel service providers
- Competition Commission finds nine hotels run by major operators passed on pricing information and communications between two competitors
- Watchdog says issuing infringement notices to the companies is an appropriate and ‘proportionate’ measure
The competition watchdog has caught some of Hong Kong’s largest hotel groups and a tour operator passing on information between two travel service operators that fixed the price of tickets for tourist attractions and transport.
Instead of bringing them to a tribunal, the Competition Commission said on Wednesday that it decided issuing infringement notices to the companies was an appropriate and “proportionate” measure to seek compliance.
“This is the first time the commission has pursued facilitators of cartel conduct, driving home the message that not only cartelists, but third parties who facilitate anticompetitive conduct between competing businesses may also be subject to the commission’s enforcement action,” chairman Samuel Chan said, adding the investigation was a signal to the industry to “steer clear of similar conduct”.
A commission investigation found that between March 2016 and May 2017 Gray Line and Tink Labs agreed to fix prices for tourist attractions and transport tickets, including Hong Kong Disneyland, Ocean Park, the Peak Tram, Ngong Ping 360 Cable Car and Airport Express, which were sold at the hotels.
Tink Labs had been selling discounted tickets via its “Handy” devices installed in hotel rooms, which Gray Lines complained was hurting its business, so a price match was agreed.