Hong Kong competition law enforcement update: Key developments and business takeaways (2024 – Q1 2025) – A three-part series
Part 1: A snapshot of Hong Kong competition law enforcement since 2024
Hong Kong competition law enforcement operates under an adversarial system, distinguishing itself from the administrative enforcement regimes adopted in Mainland China. Under this framework, the Hong Kong Competition Commission (the “Commission”) oversees investigating and prosecuting anti-competitive conduct that contravenes the Hong Kong Competition Ordinance. The Commission has to apply to the Hong Kong Competition Tribunal (the “Tribunal”) for imposing penalties.
From 2024 to Q1 2025, the Commission maintained robust enforcement efforts, with a particular focus on tackling cartel cases impacting livelihoods and enhancing co-operation with Mainland authorities.
In this three-part legal update, we examine key developments in competition law enforcement, highlighting significant cases, and providing practical insights to help clients navigate Hong Kong’s dynamic competition landscape.
Administrative developments
(1) Enhancing cross-border cooperation with Guangdong AMR in GBA
In January 2024, the Commission and the Guangdong Administration for Market Regulation (“Guangdong AMR”) jointly published the Competition Compliance Manual for Businesses in Guangdong and Hong Kong (the “Manual”).11 This initiative aims to assist businesses in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA), particularly small and medium-sized enterprises, in understanding and navigating the competition law frameworks in both Hong Kong and Mainland China to ensure compliance.
The Manual provides a comprehensive overview of key legal provisions and enforcement mechanisms while also incorporating relevant case studies and practical compliance recommendations. It not only serves as a valuable resource for businesses but also signals the commitment of competition agencies on both sides to fostering a fair and competitive business environment in the GBA.
The Manual also builds upon and advances the goals established in the Memorandum of Understanding (MoU) signed between the two agencies on July 19, 2023.22
(2) Leadership confidence
On 26 April 2024, the Hong Kong government announced the reappointment of Samuel Chan Ka-yan as chairman of the Commission, along with nine incumbent members, for a two-year term starting 1 May 2024. Additionally, Rasul Butt was reappointed as chief executive officer of the Commission for a three-year term beginning 3 May 2024.33
These reappointments reflect the government’s confidence in their leadership and strategic direction.
(3) MoU with ICAC
On 18 December 2024, the Commission signed a MoU with the Independent Commission Against Corruption (ICAC) to enhance collaboration and information exchange between the two agencies.44 The MoU establishes a framework for collaboration on case referrals, joint investigations and research, specifically targeting illegal activities involving both anti-competitive and corrupt practices.
Under the MoU, both agencies will actively consider referring matters to one another based on their respective functions. Businesses are advised to remain vigilant about potential violations that may fall under both the Prevention of Bribery Ordinance and the Competition Ordinance. If a case overlaps the jurisdiction of both agencies, they will co-ordinate to conduct joint investigations for efficient resolution. The MoU also creates a platform for coordinating training initiatives to enhance enforcement capabilities.
This MoU follows two successful joint actions in April and August 202455 targeting bid-rigging and corruption in the building maintenance sector. The MoU signing acknowledges the significant risks companies face when engaging in public biddings vulnerable to bid-rigging and corruption, highlighting the importance of maintaining vigilant oversight of projects vulnerable to such misconduct.
This is also the third inter-agency MoU signed by the Commission, following agreements with the Communication Authority (CA) in 201566 and the Securities and Futures Commission (SFC) in 202077. These partnerships demonstrate the agencies’ commitment to fostering a complementary and coordinated approach to fulfilling their respective enforcement responsibilities.
Enforcement developments
(1) Administrative level
- The leading EV producer BYD adjusted its potentially anti-competitive business policy after the Commission raised concerns.88
- The Commission conducted four warranted searches targeting suspected cartels involved in the funeral services, building maintenance and logistics technology services sectors.
Table 1: Warranted Searches (2024 to Q1 2025)
Please click on the superscript numbers 99, 1010, 1111, 1212 for details of the corresponding remarks in the table.
(2) Adjudicative level
- Midland initiated the first legal challenge to the Commission’s application of Leniency Policy for Undertakings Engaged in Cartel Conduct (“Undertaking Leniency Policy”) in the real estate agency cartel case in March 2024.1313
- The Tribunal made a judgment on the first cartel case linked to a government subsidy programme in July 2024;1414
- The Tribunal concluded the cleansing service cartel case in February 2025, which was initially brought by the Commission in 2022.1515
- In February 2025, West Kowloon Magistrates’ Court handed down the first criminal conviction for obstructing the Commission’s investigation in the cleaning service cartel case.1616
Table 2 – Timeline of Listed Cases at Adjudicative Level
| Date | Event |
| Real estate agents (Midland et al) | |
| Jan. 2023 | Commission probed internal memos regarding real estate agency commissions1717 |
| Nov. 2023 | Commission commenced proceedings against Midland and senior management1818 |
| Mar. 2024 | Midland initiated legal challenge to Commission’s leniency policy |
| Government subsidy case in IT sector (Multisoft et al) | |
| Mar. 2023 | Commission brought first proceedings in government subsidy case in the IT sector1919 |
| Jun. 2024 | Tribunal ordered payment of penalties against respondents who admitted liability; Commission applied for relief against non-responding parties2020 |
| Jul. 2024 | Tribunal handed down judgment in this government subsidy case |
| Cleansing service case (Hong Kong Commercial Cleaning (“HKC”)) | |
| Dec. 2021 | Commission brought proceedings against cleansing service cartel2121 |
| Jan. 2024 | An involved undertaking (Man Shun Hong Kong & Kln Cleaning Company Limited) and its director admit liability2222 |
| Aug. 2024 | Commission brought plea against individual obstructing investigation before West Kowloon Magistrates’ Courts2323 |
| Dec. 2024 | HKC and its two directors admitted liability2424 |
| Jan. 2025 | Tribunal issued orders against all respondents2525 |
| Feb. 2025 | Tribunal made judgment |
| Feb. 2025 | West Kowloon Magistrates’ Courts issued a criminal conviction against the individual obstructing Commission’s investigation |
In Parts 2 and 3, we will uncover key revelations from the Commission’s raids and delve into these cases that have progressed at the Tribunal from 2024 to Q1 2025, shedding light on their implications and essential takeaways for companies to navigate Hong Kong’s competition law maze.
Before delving into Part 2, let’s reflect on several critical questions:
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- The Commission, Competition Commission and Guangdong Administration for Market Regulation Co-publish Competition Compliance Manual for Businesses in Guangdong and Hong Kong, 10 Jan. 2024, at https://www.compcomm.hk/en/media/press/files/GBA_booklet_PR_EN.pdf.
- The Commission and Guangdong AMR, MoU on Promoting Effective Implementation of Competition Policy and Law in the Guangdong-Hong Kong-Macao Greater Bay Area, 19 Jul. 2023, at https://www.compcomm.hk/en/about/inter_agency/files/MoU_GDAMR_EN.PDF
- The Commission, Competition Commission Welcomes the Appointment of Chairman and Members and Announces the Re-appointment of Chief Executive Officer, 26 Apr. 2024, at https://www.compcomm.hk/en/media/press/files/Membership_of_Commission_PR_EN.pdf
- The Commission and ICAC, MoU, 18 Dec. 2024, at https://www.compcomm.hk/en/about/inter_agency/files/ENG_CC_ICAC_MoU.pdf
- See Commission Press Release dated 18 Apr. 2024, and Commission Press Release dated 26 Aug. 2024, respectively.
- The Commission and CA, MoU, 14 Dec. 2015, at https://www.compcomm.hk/en/about/inter_agency/files/MoU_e_final_signed.pdf
- The Commission and SFC, MoU, 16 Apr. 2020, at https://www.compcomm.hk/en/about/inter_agency/files/ENG_CC_SFC_MOU.pdf
- The Commission, Competition Commission Welcomes Amendments Made by BYD Company Limited to Its Car Warranty Manual, 3 Oct. 2024, at https://www.compcomm.hk/en/media/press/files/BYD_PR_EN.pdf
- The Commission, Competition Commission Conducts Search regarding Funeral Service Case, 17 Jan. 2024, at https://www.compcomm.hk/en/media/press/files/Funeral_Service_PR_EN.pdf
- The Commission, Twenty Netted, Syndicate Smashed in Competition Commission and ICAC, First Joint Operation against Corruption and Tender-rigging over Building Maintenance, 18 Apr. 2024, at https://www.compcomm.hk/en/media/press/files/Joint_operation_PR_EN.pdf
- The Commission, Competition Commission and ICAC Conduct Second Joint Operation against Bid-rigging and Corruption over Building Maintenance, 26 Aug. 2024, at https://www.compcomm.hk/en/media/press/files/PR_Joint_operation_AUG_EN.pdf
- The Commission, Competition Commission Conducts Search in Case relating to Government Subsidy Scheme, 13 Nov. 2024, at https://www.compcomm.hk/en/media/press/files/subsidy_search_PR_EN.pdf
- Hong Kong Stock Exchange News, Midland Holdings Inside Information Announcement in Relation to Judicial Review Proceedings, Competition Tribunal Proceedings and Business Update, 18 Mar. 2024, at https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0318/2024031801128.pdf
- The Tribunal, CTEA 1/2023 [2024] HKCT 2, 30 Jul. 2024, at https://legalref.judiciary.hk/lrs/common/ju/ju_frame.jsp?DIS=161668&currpage=T
- The Tribunal, Commission v. Hong Kong Commercial Cleaning Service et al, CTEA 2/2021 [2025] HKCT 1, 14 Feb. 2024, at https://legalref.judiciary.hk/lrs/common/ju/ju_frame.jsp?DIS=166370&currpage=T; See also, the Commission, Commission Welcomes Tribunal’s Orders in Cleansing Service Cartel Case, Case Concluded with HK$22 Million Penalty and Three Director Disqualification Orders Imposed, 20 Jan. 2025, at https://www.compcomm.hk/en/media/press/files/cleansing_order_PR_EN.pdf
- The Commission, Competition Commission Welcomes Conviction in Hong Kong’s First Criminal Case for Non-compliance of Its Investigation Powers, 28 Feb. 2025, https://www.compcomm.hk/en/media/press/files/First_criminal_conviction_PR_EN.pdf
- The Commission, Statement by the Competition Commission regarding Estate Agencies’ Internal Memos on Commission for First-hand Property Transactions, 6 Jan. 2023, at https://www.compcomm.hk/en/media/press/files/Property_PR_EN.pdf
- The Commission, Competition Commission Takes Estate Agencies’ Price-fixing Cartel Case to Competition Tribunal, 14 Nov. 2023, at https://www.compcomm.hk/en/media/press/files/Estate_Agencies_PR_EN.pdf
- The Commission, Competition Commission Takes First Cartel Case Relating to Government Subsidy Scheme to Competition Tribunal, 22 Mar. 2023, at https://www.compcomm.hk/en/media/press/files/Subsidy_PR_EN.pdf
- The Commission, Competition Commission Welcomes Tribunal’s Orders in First Cartel Case relating to Government Subsidy Scheme, 7 Jun. 2024, at https://www.compcomm.hk/en/media/press/files/Subsidy_order_PR_EN.pdf.
- The Commission, Competition Commission Takes Cleansing Service Cartel Case before Competition Tribunal, 14 Dec. 2021, at https://www.compcomm.hk/en/media/press/files/PR_Cleansing_Service_Cartel_EN.pdf
- The Commission, Hong Kong Commercial Cleaning Services Admits Liability and Agrees to over HK$10 Million Penalty in Cleansing Service Cartel Case, 9 Dec. 2024, at https://www.compcomm.hk/en/media/press/files/PR_Cleansing_services_HKC_EN.pdf
- The Commission, Competition Commission Issues Statement on First Criminal Case Relating to Non-compliance with Its Investigation Powers, 29 Aug. 2024, at https://www.compcomm.hk/en/media/press/files/Non_compliance_PR_EN.pdf
- Supra note 22.
- The Commission, Competition Commission Welcomes Tribunal’s Orders in Cleansing Service Cartel Case Concluded with HK$22 Million Penalty and Three Director Disqualification Orders Imposed, 20 Jan. 2025, at https://www.compcomm.hk/en/media/press/files/cleansing_order_PR_EN.pdf
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