Hong Kong hotel operator, tour transport agency face fines over price fixing as antitrust watchdog recommends disqualifying firm’s head for 3 years

Hong Kong’s antitrust watchdog is seeking a fine for the operator of a high-end hotel and a tour transport agency over a price-fixing case, and has suggested that the firm’s managing director be disqualified for three years.

On Thursday, the Competition Commission recommended a HK$4.17 million (US$535,290) fine to be imposed on transport company Gray Line Tours under a cooperation agreement, while seeking the removal of Michael Wu Siu-ieng from duty as its managing director, for their roles in fixing the prices of tickets sold at properties owned by nine hotel operators in Hong Kong.

Wu was the chairman of the Travel Industry Council, which regulates the city’s travel agents, from July 2010 to October 2016.

The commission also proposed a penalty of HK$1.6 million on the owner and operator of InterContinental Grand Stanford Hotel over its involvement in the case.

The fines were the result of an agreement with the commission which will be jointly submitted to the Competition Tribunal for legal proceedings.

The watchdog said it had reasons to believe that between May 2016 and May 2017, two competing travel services providers – Gray Line and Tink Labs Limited – agreed to fix the prices of tourist attraction and transport tickets sold at hotels including InterContinental Grand Stanford Hotel, Prudential Hotel, Harbour Plaza 8 Degrees and six other groups.

The attractions covered by the tickets included Hong Kong Disneyland, Ocean Park Hong Kong, Peak Tram, Ngong Ping 360 Cable Car, Big Bus, Madame Tussauds Hong Kong, and Hong Kong 3D Museum.

The hotel groups, as well as a tour firm operating in one of the hotels, acted as facilitators by passing on pricing information among themselves.