Competition Commission widens probe on four contractors over suspected $500m bid-rigging

The Competition Commission searched four building contractor offices on Wednesday over suspected bid-rigging on 28 building maintenance projects worth an estimated HK$500 million. 

The enforcement action marks an expansion of the January investigation into building maintenance contracts spanning 12 districts in Hong Kong after new leads were uncovered.

The Commission executed search warrants at 12 premises yesterday, covering the offices of the four building contractors and the residences of individuals involved. 

Among previously seized evidence, investigators found a series of suspicious text messages suggesting the potential existence of another hidden bid-rigging syndicate aimed at manipulating tender results. The messages revealed that one contractor, not previously under investigation, is alleged to have used middlemen to recruit other contractors to submit cover bids. 

Following in-depth analysis, the same contractor is also suspected of engaging in anti-competitive practices across multiple projects, including disseminating price guidance—commonly referred to as "homework"—to rig bidding outcomes. 

The alleged practices are suspected to have constituted bid-rigging, market-sharing, price-fixing and exchanging competitively sensitive information, in contravention of the First Conduct Rule of the Competition Ordinance. 

With several projects yet to be awarded and others already commenced or completed before the Commission's investigation began, the Commission said it has been reaching out to relevant stakeholders. 

To ensure the investigations could be carried out effectively, the Commission withheld case details, adding that further announcements will be made if action proceeds.

𝗗𝗼𝘄𝗻𝗹𝗼𝗮𝗱 𝗧𝗵𝗲 𝗦𝘁𝗮𝗻𝗱𝗮𝗿𝗱 𝗔𝗽𝗽 ↓