11 premises raided over alleged bid-rigging to supply virtual reality systems to schools

Hong Kong's competition watchdog has conducted raids on 11 offices and homes in connection with alleged bid-rigging for contracts to supply virtual reality (VR) systems to schools and non-profit organizations, with contracts valued at approximately HK$10 million (US$1.3 million). The Competition Commission announced that it had secured warrants and executed searches on Friday, targeting the premises of several IT service and equipment providers, other companies, and the residences of several suspects, in an operation codenamed "Lens".

Allegations of bid-rigging, price-fixing, market-sharing, and exchange of competitively sensitive information during the quotation process for VR equipment and software installation services to various schools and non-profit organizations were made by the watchdog. The searches stemmed from earlier complaints indicating that some IT suppliers had engaged in anti-competitive behavior when submitting quotations for VR systems, such as providing tender documents to other suppliers and companies to act as sham bidders.

The commission stated that it satisfied there was reasonable cause to suspect a violation of competition rules had occurred. The watchdog pledged to continue its investigation and requested the implicated parties to provide documents and information. The watchdog emphasized that rapid advancements in VR technology have led to its use in various fields, but the suspected anti-competitive conduct might negatively impact these organizations by reducing choices or increasing costs, thereby compromising the efficient utilization of public resources.