Competition watchdog raids 11 premises

On Friday, the Competition Commission announced they had conducted searches at 11 locations in connection with an alleged bid-rigging scheme involving virtual reality (VR) equipment contracts valued at approximately HK$10 million. The operation, known as "Lens," involved visiting the offices of various IT service and equipment providers, as well as the residences of individuals implicated in the scheme.

The companies under investigation are accused of engaging in anti-competitive practices, such as bid-rigging, price-fixing, market-sharing, and sharing competitively sensitive information when submitting bids for VR equipment and software installation services to schools and non-profit organizations. This behavior violated the first conduct rule under the Competition Ordinance.

The Commission's investigation began following complaints alleging that some IT suppliers prepared tender documents for other suppliers to act as cover bidders. After an initial review, the Commission determined there was reasonable cause to suspect a breach of the Competition Ordinance and escalated the case to an investigation.

During the raids, the Commission was granted the power to demand documents, information, and the attendance of individuals for questioning. The Commission emphasized the importance of all market participants adhering to fair competition practices, warning that anti-competitive conduct could lead to reduced choices and higher costs for schools and non-profit organizations, ultimately undermining the efficient use of public resources.

The Commission urged anyone with information related to the case to come forward and emphasized that individuals involved in cartel conduct should approach the Commission for leniency or cooperation.