Competition watchdog takes cartel case against company owned by justice chief Teresa Cheng’s husband

Hong Kong’s antitrust watchdog has launched legal proceedings against two firms accused of price-fixing, market sharing, and bid-rigging in relation to the supply of air-conditioning works in Hong Kong, with one of the firms being Analogue Holdings, an engineering company founded by justice chief Teresa Cheng Yeuk-wah’s husband, Otto Poon Lok-to.  

The Competition Commission accused the firms Analogue and Shun Hing - two competing providers of air-conditioning works, and their three employees, Eric Ser Ka-wai, Cheng Kit-shun, and Ken Kwan Siu-kin, of engaging in serious anti-competitive conduct in contravention of the First Conduct Rule of the Competition Ordinance, which could have affected air-conditioning projects worth some HK$2 billion.

They were said to have fixed prices, shared markets, and rigged bids in relation to the supply of air-conditioning works in Hong Kong from December 14, 2015, to December 4, 2019.  

The commission sought a declaration from the tribunal that the respondents contravened the First Conduct Rule as well as an order to fine them and recover the commission’s investigation costs, as well as the costs of the proceedings.  

It also requested an order requiring the two companies to adopt an effective compliance program and that the respondents be prohibited from engaging in the same conduct in the future.  

The watchdog also noted that it has identified other potentially anti-competitive conduct in relation to air-conditioning works and may commence further proceedings in the tribunal in the near future.   

Watchdog chief executive Rasul Butt said with air-conditioning being a modern necessity, the cartel affected many members of the public residing and working in residential and commercial buildings.  

“The enforcement action today further demonstrates that disrupting hardcore cartels that affect people’s livelihood, especially when the companies involved are major players in the relevant market, will continue to be one of the Commission’s top priorities,” he added.