In a groundbreaking move, Hong Kong’s Competition Tribunal has levied fines totaling HK$1.31 million (US$167,740) against three companies and a director for bid manipulation in a Covid-19 relief programme, marking the city’s first case of its kind.
The companies admitted to engaging in price-fixing, market-sharing, bid-rigging, and sharing sensitive information during the bidding process for the Distance Business Programme, which aimed to support businesses amid coronavirus restrictions.
KWEK Studio, Multisoft, MTT Group Holdings, and Yat Ying Hong were found to have improperly secured contracts, while BP Enterprise Company and Nursing Home Company were also implicated in the bid manipulation scheme.
Despite penalties imposed by the Competition Tribunal, the companies received discounts for cooperation. The investigation, initiated by the Hong Kong Productivity Council, identified suspicious bidding patterns, leading to this crucial enforcement action against cartel behavior in a government subsidy scheme.
This landmark case showcases the city’s commitment to fair competition and serves as a warning to entities engaging in anticompetitive practices.
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