Kowloon City Private Residential Complex Maintenance Project Suspected of Collusion Involving HK$40 Million, Competition Commission Seeks Four Locations
Keywords: collusion, Competition Commission, Kowloon City private residential complex, HK$40 million, tendering, maintenance project, tender amount, advisory company, construction contractor, violent means, suppress bidding
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Wednesday, 06 August 2025
The Competition Commission stated that a maintenance project at a private residential complex in Kowloon City is suspected of collusion. An advisory company is alleged to have colluded with a construction contractor to manipulate the bidding results and used violent means to suppress bidding, hindering other interested contractors from submitting tenders. The tender amount reached approximately HK$40 million. This morning (5th), the Competition Commission launched an enforcement action, searching four locations, and the investigation is still ongoing. The Competition Commission stated that this morning, it launched an enforcement action, searching four locations based on a court warrant, including the office of a construction contractor and an advisory company, as well as the residences of the involved individuals. The case involves the tendering of a maintenance project at a private residential complex in Kowloon City, with a tender amount reaching approximately HK$40 million. The case details indicate that the relevant companies are alleged to have colluded during the bidding process, violating the 'First Conduct Rule' under the Competition Ordinance. The Competition Commission previously received a referred case. After further investigation, it was found that an advisory company colluded with a construction contractor to manipulate the bidding results and used violent means to suppress bidding, hindering other interested contractors from submitting tenders. The Competition Commission exercised its compulsory powers to require the relevant parties to provide documents and information. The Competition Commission, having found reasonable grounds to suspect a violation of competition rules, escalated the case to the investigation stage. In today's action, in addition to searching locations with a court warrant, the Competition Commission also exercised its compulsory powers to require the relevant parties to provide documents and information and to attend the Commission's hearings to provide relevant information. The Competition Commission has also contacted the management company of the residential complex and maintains close contact. As the investigation is still ongoing, the Competition Commission does not rule out further enforcement actions. The Competition Commission stated that, as the investigation is still ongoing, it will not make further comments on the relevant actions at this stage. The Competition Commission emphasized that conducting an investigation does not indicate a conclusion on the case. The Competition Commission stated that it will combat illegal acts that use anti-competitive means to gain profit and harm the interests of property owners, and is committed to maintaining a fair competitive environment in the building maintenance industry.
