CTEA 1/2018

[2022] HKCT 2

IN THE COMPETITION TRIBUNAL OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COMPETITION TRIBUNAL ENFORCEMENT ACTION NO 1 OF 2018

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DECISION ON PENALTIES

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Introduction

1. The present proceedings concern contravention of the First Conduct Rule in relation to tendering for renovation and redecoration work pursuant to the Hong Kong Housing Authority (“ HKHA ”)’s Decoration Contractor System (“ DCS ”). On 3 June 2020 I entered judgment by agreement between the Commission and the 1 ^st , 2 ^nd and 4 ^th Respondents for declarations that the 1 ^st , 2 ^nd and 4 ^th Respondents had contravened or been involved in the contravention of the First Conduct Rule, pursuant to a process analogous to the Carecraft procedure [1] used in director’s disqualification proceedings pursuant to the Securities and Futures Ordinance , Cap 571 and the Companies (Winding Up and Miscellaneous Provisions) Ordinance , Cap 622 to resolve applications, to which a respondent concedes. In the Competition context it can conveniently be referred to as the Kam Kwong procedure. That is how I shall refer to it in future. The issue of penalties was adjourned. The application came back on before me on 7 August 2020. By that time an appeal had been issued in respect of the penalties imposed in CTEA 2/2017 by a judgment of G Lam J (as he then was) in those proceedings on 29 April 2020. As the appeal concerned an issue, which was directly relevant to the penalties to be imposed in the present proceedings I awaited the handing down of the Court of Appeal’s judgment on 2 June 2022 before determining the penalties against the 1 ^st , 2 ^nd and 4 ^th Respondents.

2. Subsequent to the 1 ^st , 2 ^nd and 4 ^th Respondents conceding that they had contravened the First Conduct Rule, the 3