The Competition Commission searched 11 premises under court warrants on October 8 as part of an investigation into suspected collusion over suppliers’ quotes for virtual-reality equipment and software installation submitted to schools and non-profit organisations.
The Commission suspects suppliers may have rigged bids, fixed prices, allocated markets and exchanged competitively sensitive information, potentially breaching the First Conduct Rule under the Competition Ordinance. The preliminary estimate for the total value of the contracts is about HK$10 million.
The case began with a complaint alleging that an information-technology supplier prepared cover bids for other suppliers and companies involved. After following up on the complaint, the Commission said it had reasonable cause to suspect a breach of the competition rules and moved the case to the investigation stage.
The searches included offices of information-technology service and equipment suppliers and other companies involved, as well as the homes of people involved. The Commission also required relevant parties to provide documents and information and attend hearings.
The Commission said the suspected conduct could reduce the choices available to schools and non-profit organisations, or increase their costs, hindering the efficient use of public resources.