Hong Kong Competition Commission raids 12 sites over HK$500 million bid-rigging probe

Hong Kong’s Competition Commission has launched a second round of enforcement actions, codenamed ‘Hunter’, targeting a suspected bid-rigging syndicate in the building maintenance sector. Under court orders, the watchdog raided 12 premises, including the offices of four engineering contractors and various private residences.

The investigation involves 28 building renovation projects across 12 districts, with an estimated total contract value of approximately HK$500 million. The Commission alleges that certain contractors engaged in anti-competitive behavior, such as market sharing, price-fixing, and exchanging sensitive information. This includes distributing pricing instructions to other firms, a practice referred to within the syndicate as ‘homework’ to manipulate tender results.

This operation follows an initial investigation in January. During the first round, investigators discovered suspicious text messages suggesting the existence of a hidden syndicate attempting to manipulate tenders through middlemen and cover bids. The Commission is currently analyzing seized evidence and communicating with stakeholders involved in the affected housing estates and buildings.