HK$22 million penalty and director disqualifications handed down in major cleansing service cartel case

A cleansing service cartel case involving two local companies has concluded with a penalty of HK$22 million and three director disqualification orders issued, according to the Competition Commission.

The case was brought to the Competition Tribunal in 2021, concerning the cleaning companies Hong Kong Commercial Cleaning Services (HKC) and Man Shun Hong Kong & Kln Cleaning Company (MS), along with three of their directors.

They were accused of colluding when bidding for 17 contracts worth about HK$180 million to provide cleaning services for public housing and other buildings from the Hong Kong Housing Authority.

On Monday, the tribunal ordered MS and its director, Cheng Hok-kuen, to pay a pecuniary penalty of HK$11.31 million and serve a 24-month director disqualification, in addition to covering the Commission’s legal and investigation costs.

Regarding HKC and its two directors, Chan Ming-chu and Cheng Yip-chiu, were ordered to pay a HK$10.96 million penalty on December 9 last year.

Also, the Commission imposed a fine of HK$10,000 on each of the two directors and disqualified them from serving as directors for 24 months.

The Commission expressed gratitude for the Housing Authority's assistance and stated that the conclusion of the case marks a significant step in ensuring a fair and healthy competitive environment, benefiting both businesses and consumers.

“The Commission would like to reiterate that cartels affecting people’s livelihoods remain its key enforcement priority, and it will continue to attach high importance to tackling such issues,” it said.

(Cheng Wong)