COMPETITION COMMISSION v. HONG KONG COMMERCIAL CLEANING SERVICES LTD AND OTHERS

COMPETITION COMMISSION v. HONG KONG COMMERCIAL CLEANING SERVICES LTD AND OTHERS

The Tribunal accepted the parties' agreed facts and admissions under the Kam Kwong procedure, applied the RPP methodology with agreed VOS, gravity (20%) and duration multiplier (2.25), imposed uplifts for NCC breaches, director involvement and obstruction, applied cooperation and proportionality discounts (including exceptional reduction for MS on viability grounds), found penalties were within statutory caps and not manifestly excessive, and therefore entered consent declarations, pecuniary penalties, disqualification orders, costs and payment/guarantee arrangements as agreed.

Citation
[2025] HKCT 1
Parties
Applicant: Competition Commission; 1st Respondent (hkc): Hong Kong Commercial Cleaning Services Limited; 2nd Respondent (ms): Man Shun Hong Kong & KLN Cleaning Company Limited; 3rd Respondent (director/shareholder of Hkc): Chan Ming Chu; 4th Respondent (director/shareholder of Hkc): Cheng Yip Chiu; 5th Respondent (director/shareholder of Ms): Cheng Hok Kuen
Court
Competition Tribunal
Jurisdiction
Hong Kong
Judgment Date
14 February 2025
Case Number
CTEA2/2021
Procedural Posture
Competition Tribunal Enforcement Action / Judgment by Consent Under Kam Kwong Procedure: Liability and Relief Determined by Consent Orders
Outcome
Declarations of contravention granted; consent orders imposing pecuniary penalties, director disqualifications, costs and payment arrangements made as agreed
Legal Topics
Price Fixing, Information Exchange, Bid‑rigging, Pecuniary Penalties, Director Disqualification, Settlement Procedure (kam Kwong)
Source Language
EN
Competition Law Regulatory Enforcement Price Fixing Information Exchange Bid‑rigging Pecuniary Penalties Director Disqualification Settlement Procedure (kam Kwong)

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Parties

Competition Commission

Applicant

Hong Kong Commercial Cleaning Services Limited

1st Respondent (hkc)

Man Shun Hong Kong & KLN Cleaning Company Limited

2nd Respondent (ms)

Chan Ming Chu

3rd Respondent (director/shareholder of Hkc)

Cheng Yip Chiu

4th Respondent (director/shareholder of Hkc)

Cheng Hok Kuen

5th Respondent (director/shareholder of Ms)

Procedural Posture

Competition Tribunal Enforcement Action / Judgment by Consent Under Kam Kwong Procedure: Liability and Relief Determined by Consent Orders

Legal Issues

  1. 1 Whether HKC and MS contravened the First Conduct Rule by exchanging commercially sensitive information in HA tenders
  2. 2 Whether Ming, Chiu and Kuen were 'involved' in the contravention for the purposes of s.91
  3. 3 Appropriate quantum of pecuniary penalties applying s.93(2) and RPP methodology

Ratio Decidendi

The Tribunal accepted the parties' agreed facts and admissions under the Kam Kwong procedure, applied the RPP methodology with agreed VOS, gravity (20%) and duration multiplier (2.25), imposed uplifts for NCC breaches, director involvement and obstruction, applied cooperation and proportionality discounts (including exceptional reduction for MS on viability grounds), found penalties were within statutory caps and not manifestly excessive, and therefore entered consent declarations, pecuniary penalties, disqualification orders, costs and payment/guarantee arrangements as agreed.

Court Disposition

Declarations of contravention granted; consent orders imposing pecuniary penalties, director disqualifications, costs and payment arrangements made as agreed

Orders

  • Declaration that Hong Kong Commercial Cleaning Services Limited contravened the First Conduct Rule (s.6)
  • Declaration that Chan Ming Chu and Cheng Yip Chiu were involved in HKC's contravention (s.91)