Competition Commission sets sights on anti-bid-rigging efforts

The newly appointed chairman of the Competition Commission, Jat Sew-tong says he would study the possibility to criminalise bid-rigging.

Senior Counsel Jat Sew-tong made his first media appearance today after taking office as Chairperson of the Competition Commission in May.

The deadly fire at Wang Fuk Court in Tai Po spotlighted the city's serious issue of bid-rigging.

However, the Competition Commission, which focuses on combating the illegal anti-competitive practice, as empowered by the Competition Ordinance, can mainly impose fines only -- and their probes do not lead to criminal liability.

The newly-appointed chair admits insufficiencies in regulations and will consider criminalising the offences, noting that these serious anti-competitive behaviors are not just business offences -- but they also affect the public's livelihood.

"We are looking in all possibilities and see how we could make the ordinance effective, and have a sufficient deterrent effect to this kind of behaviour."

He says he would wait for the independent committee on the Wang Fuk Court Fire to submit a report before making further recommendations.

"I understand that the government may consider making a requirement that in tenders of that kind the 'non-collusion' clause will be in the form of a statutory declaration. So whoever puts in the tender will have to make a statutory declaration that they are doing it independently without collusion with any other party and therefore making that statutory declaration would by itself attract criminal liability if it is a false declaration."

The body hopes to come up with proposed amendments to the Competition Ordinance on bid-rigging within this legislative year.

Jat says the Competition Commission will also conduct studies on oil company pricing after a 10-year gap to prevent anti-competitive behaviours.

The Commission says starting next month, some meetings will be open to the public, in order to enhance transparency.