Hong Kong cleaning firm fined HK$11 million in housing estate price-fixing case

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Hong Kong cleaning firm fined HK$11 million in housing estate price-fixing case
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A Hong Kong cleaning company has been fined nearly HK$11 million for colluding with a rival to fix prices on bids for Housing Authority contracts worth HK$180 million, the city’s competition watchdog has disclosed.

The Competition Commission launched the investigation upon a complaint from a group of individuals, including several cleaners of a public housing estate, who alleged that contractors, including the two firms, were colluding with each other when bidding for cleaning service contracts from the authority.Hong Kong Commercial Cleaning Services, together with directors Chan and Cheng Yip-chiu, signed a statement of agreed facts on Friday to settle the case.

The tenders, involving a total amount of about HK$180 million, were submitted to provide cleaning services for public housing estates and other buildings under the authority’s management.The commission said it sought an order from the tribunal that Hong Kong Commercial Cleaning Services must pay a pecuniary penalty of HK$10.96 million, and an order that Chan and Cheng Yip-chiu must each pay a pecuniary penalty of HK$10,000.

The tribunal declared that Man Shun Hong Kong & Kln Cleaning Company and its director, Cheng Hok-kuen, had contravened the First Conduct Rule after admitting liability on January 30.

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