Hong Kong Competition Commission wins first two cartel trials

Hong Kong Competition Commission wins first two cartel trials

The Hong Kong Competition Commission has proven the existence of hardcore anticompetitive agreements “beyond reasonable doubt” in its first two cartel cases before the Competition Tribunal.

In what marks the first piece of substantial jurisprudence under the Competition Ordinance, an important question was the standard of proof in the absence of precedent.

The Competition Tribunal found against the Competition Commission in ruling that a criminal standard should apply but it found that the authority had proven its case to that standard.

The Commission demonstrated that BT Hong Kong, Nutanix Hong Kong and Tech-21 Systems and Innovix Distribution rigged bids for the installation of a server system.

The Tribunal also upheld the Commission’s charges against 10 SMEs that they had illegally agreed to allocate markets and fix prices for decorator services at a public housing estate in the north of Hong Kong.

These cases are understood to be the tip of the iceberg. They provide important guidance for future cases.  The IT and construction sectors are expected to remain active areas for regulatory scrutiny.