plaintiff: - Competition Commission defendant: - Kam Kwong Engineering Company Ltd (金光工程有限公司) - Goldfield N&W Construction Company Ltd (聯合金輝建築工程有限公司) - Pacific View Engineering Ltd (豪景工程有限公司) - CHAN Kam Shui (陳金水) - LAM Po Wong (林保旺) case_reason: > Enforcement action concerning contravention of the First Conduct Rule in relation to tendering for renovation and redecoration work pursuant to the Hong Kong Housing Authority's Decoration Contractor System. The case involved market allocation and price fixing agreements among contractors, with the 3rd and 5th Respondents entering into an illicit arrangement exploiting the 3rd Respondent's privileged position as a HKHA designated decoration contractor. judgment_summary: > The Competition Tribunal imposed pecuniary penalties on the 3rd and 5th Respondents for contravening the First Conduct Rule. The 3rd Respondent (Pacific View Engineering Ltd) was ordered to pay a penalty of $1,579,000 for contravening the First Conduct Rule. The 5th Respondent (LAM Po Wong) was ordered to pay a penalty of $280,000 for being involved in the contravention. The Tribunal rejected the argument that both respondents should be treated as one undertaking for penalty purposes, holding that each legal person should be penalized individually under sections 91-93 of the Competition Ordinance. The Tribunal accepted undertakings from both respondents instead of injunctive relief. The decision followed the Kam Kwong procedure (analogous to the Carecraft procedure) where respondents conceded liability through a Statement of Agreed Facts. A 9% reduction was granted for cooperation and admission of liability. jurisdiction_code: > HKCT jurisdiction_name: > Competition Tribunal of the Hong Kong Special Administrative Region case_location: - Competition Tribunal - Hong Kong case_object: - Decoration Contractor System contracts - King Tai Court renovation works - Market allocation agreement - Price fixing arrangement judgment_result: - allegation_content: 3rd Respondent (Pacific View Engineering Ltd) contravened the First Conduct Rule established: Y - allegation_content: 5th Respondent (LAM Po Wong) was involved in the contravention of the First Conduct Rule established: Y - allegation_content: 3rd and 5th Respondents should be treated as one undertaking for penalty purposes established: N - allegation_content: Uncertainty in the state of law should mitigate penalties established: N - allegation_content: Contravention is part of long-standing and wide-spread industry practice (aggravating factor) established: N involved_entities: - name: Hon Harris J state_reasons: Judge who heard the case in chambers and delivered the decision on penalties on 22 July 2022 - name: Hong Kong Housing Authority (HKHA) state_reasons: Authority operating the Decoration Contractor System under which the anti-competitive conduct occurred - name: Chan Hong Wing state_reasons: Sole director and shareholder of 3rd Respondent who entered into licence borrowing arrangement with 5th Respondent - name: Lee Hiu Leung state_reasons: Head of Litigation at the Competition Commission who filed affidavit regarding financial documents - name: Chan Wai Ching state_reasons: Head (Intelligence, Forensics and Leniency) in Operations Division of the Commission - name: 1st Respondent (Kam Kwong Engineering Company Ltd) state_reasons: Co-conspirator in the market allocation and price fixing agreement, previously dealt with in separate penalty decision - name: 2nd Respondent (Goldfield N&W Construction Company Ltd) state_reasons: Co-conspirator in the market allocation and price fixing agreement, previously dealt with in separate penalty decision - name: 4th Respondent (CHAN Kam Shui) state_reasons: Individual involved in the contravention, previously dealt with in separate penalty decision