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CTEA 1/2022
[2025] HKCT 2
IN THE COMPETITION TRIBUNAL OF THE
HONG KONG SPECIAL ADMINISTRATIVE REGION
COMPETITION TRIBUNAL ENFORCEMENT ACTION NO 1 OF 2022
________________
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BETWEEN
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COMPETITION COMMISSION
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Applicant
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and
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GRAY LINE TOURS OF HONG KONG LIMITED
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1
st
Respondent
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HARBOUR PLAZA 8 DEGREES LIMITED
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2
nd
Respondent
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HARBOUR PLAZA HOTEL MANAGEMENT LIMITED
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3
rd
Respondent
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PRUDENTIAL HOTEL (BVI) LIMITED
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4
th
Respondent
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TAK HOW INVESTMENT LIMITED (TRADING
AS INTERCONTINENTAL GRAND STANFORD HONG KONG)
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5
th
Respondent
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WU SIU IENG MICHAEL
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6
th
Respondent
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________________
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Before:
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Hon Harris J, President of the Competition Tribunal in Court
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Date of Hearing:
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29 November 2023
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Date of Judgment:
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25 March 2025
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J U D G M E N T
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Introduction
1.
The 4
th
Respondent in these enforcement proceedings brought by the Competition Commission (“
Commission
”) is Prudential Hotel (BVI) Limited (“
Prudential
”). The Commission seeks (1) a declaration that Prudential has contravened the first conduct rule (“
FCR
”), (2) a pecuniary penalty, and (3) an order requiring Prudential to adopt and implement an effective compliance programme. The relevant factual background is uncontroversial. It is contained in a comprehensive list of agreed facts (“
Agreed Facts
”). Rather than repeat them in the body of this judgment a copy of the Agreed Facts is appended to it. Prudential admits liability. What is in issue is the assessment of the pecuniary penalty and this turns on Prudential’s role in the price fixing arrangement made between Gray Line Tours of Hong Kong Limited (“
Gray Line
”) and Tink Labs Limited (“
Tink Labs
”) in connection with the prices of entrance tickets for tourist attractions and transportation services at Prudential’s hotel to its guests, which commenced on 27 May 2016 and continued to 8 May 2017 (“
Arrangement
”). The enforcement proceedings against Gray Line was concluded by agreement and a
Kam Kwong
application determined by my decisions dated 14 June 2023 and 26 July 2023, which contain a comprehensive explanation of the contraventions of the FCR by Gray Line, the 5
th
Respondent (“
Tak How
”) and the 6
th
Respondent. The salient facts are as follows.
(1) Prudential was and is the owner and manager of a hotel in Hong Kong trading under the name of Prudential Hotel.
(2) Gray Line engaged in the provision of travel-related services including sale of tickets for tourist attractions (“
Tickets
”). Tickets were sold at tour counters located within the premises of 12 hotels including the Prudent
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