Competition watchdog issues tougher anti-collusion tender clause
On.cc · 2 SOURCESabout 2 hours ago2 MIN
Summary
Hong Kong’s Competition Commission has rolled out a strengthened model non-collusion clause for tendering, aiming to make bidders explicitly declare they have not engaged in price-fixing or other collusive conduct . Secretary for Commerce and Economic Development Algernon Yau said the enhanced clause reflects the authorities’ resolve to tackle bid-rigging, but stressed it is only the first step in a wider policy and enforcement effort .
Key Points
- Yau said on 8 August in a radio programme that bidders signing the enhanced clause could face criminal prosecution if later found to have breached it .
- The Competition Commission has also proposed amending the Competition Ordinance to criminalise serious bid-rigging, with a suggested maximum jail term of seven to ten years .
- The commission expects to complete its law reform proposals by September this year and aims to submit them to the Legislative Council in the first quarter of 2027 .
- Authorities are considering a dual-track civil and criminal enforcement model, with serious cases involving strong evidence and major public interest pursued criminally .
- The latest push follows concerns in the building maintenance sector, where the commission said systemic collusion has long involved seven anti-competitive tactics, including market sharing and licence lending .
Why It Matters
The initiative signals a possible shift from Hong Kong’s current mainly civil competition enforcement toward tougher sanctions for the most serious bid-rigging cases . It also responds to persistent concerns that collusion in building repairs has undermined owners’ interests and public confidence, especially where organised crime elements have been alleged and current deterrence seen as inadequate .