(A) Introduction
On 9 and 10 September 2025, the Hong Kong Competition Commission (the “Commission”) executed a large-scale operation, targeting alleged bid-rigging syndicates involved in 25 building maintenance projects spanning Hong Kong. [1]
This operation marks the Commission’s second major crackdown on bid-rigging in the building maintenance sector this year, signaling a significant escalation in the enforcement of Hong Kong's competition law.
(B) Operations
The Commission’s latest action follows an earlier operation on 5 August 2025, which targeted one tender for a around HK$40 million maintenance project at a private housing estate in Kowloon City. [2] During that operation, the Commission raided 4 premises, including the offices of a building maintenance contractor and a building maintenance consultant, as well as the residences of involved individuals.
In contrast, the subsequent operation on 9-10 September 2025 marked a substantial increase in scale and complexity. The Commission raided 19 premises over two days in a case encompassing 25 separate projects across 10 districts, with a total contract value exceeding HK$600 million. Additionally, the investigation revealed two sophisticated, cohesive syndicates comprising various project contractors and related parties. Their alleged methods included: (1) exchanging and coordinating bidding prices directly or through intermediaries; and (2) submitting non-competitive "cover bids" to manipulate tender outcomes. Such conduct constitutes serious violations of the First Conduct Rule of the Competition Ordinance through bid-rigging, price-fixing, and the exchange of sensitive information.
In both operations, the Commission exercised its compulsory powers, not only executing search warrants but also requiring relevant parties to produce documents and attend before the Commission to provide relevant information.
(C) Key Takeaways
The Commission has reiterated that bid-rigging in building maintenance is a prime enforcement concern. The unprecedented scale of its latest operation, targeting sophisticated and multi-district syndicates, signals a major escalation in its proactive crackdown on these anti-competitive conduct.
In light of the Commission’s intensified enforcement, proactive compliance is necessary. Building maintenance contractors and consultants should review and update their compliance programmes by:
(1) Educating all employees involved in tendering and pricing through mandatory and regular training sessions;
(2) Establishing clear protocols on how to handle tender invitations, formulate bids, and interact with competitors; and
(3) Ensuring strict avoidance of any discussions with competitors regarding pricing, bidding strategies, market allocation, or tender outcome.
[2] https://www.compcomm.hk/en/media/press/files/building_maintenance_search_PR_EN.pdf
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