Competition watchdog says not all firms can apply for leniency amid Midland price-fixing lawsuit

Not all firms that engaged in cartel conduct can apply to the Competition Commission for leniency, the watchdog’s executive director (legal services) Lester Lee Hui-leung said. 

His remark came after the commission filed a writ on Tuesday to sue Midland Holdings, its two subsidiaries and five executives for fixing the net commission of all first-hand property transactions at 2 percent with Centaline Group’s Centaline Property Agency and Ricacorp Properties. 

Yet, no one from Centaline Group was named as defendants by the commission in the writ, which said the group had assisted in its investigation in exchange for leniency. 

On a Wednesday RTHK program, Lee said not all firms engaged in cartel conduct can apply for leniency. 

If the firm is the sole mastermind behind the anti-competitive conduct, or has forced competitors to engage in anti-competitive conduct through various means, it won’t be able to apply for leniency then, Lee said. 

He continued that even if the firms are granted leniency, it doesn’t mean they will bear no liabilities at all. The firms must assist the commission during investigation into the case, provide relevant documents and arrange staff members and directors to meet with the watchdog. 

Lee also said firms that apply for leniency can be categorized into two types; firms that proactively report to the commission before their cartel conduct is revealed and firms that provide crucial information after the watchdog learns of the cartel conduct and initiates an investigation.