Hong Kong SAR antitrust conviction highlights dangers of failing to comply with authorities

The employee of a commercial cleaning company was sentenced to two months in prison for destroying and concealing documents from authorities during a raid.

Police in Hong Kong claimed she tried to delete shortcuts on her company’s computers that linked to a competitor and five documents related to a price-fixing investigation.

Mohammed Talib, an expert in competition law at Pinsent Masons, said: “The recent conviction and imprisonment of an employee for obstructing an antitrust investigation underscores the serious personal consequence of non-compliance.”

“Businesses and individuals must be vigilant and ensure strict adherence to the requirements of the Competition Ordinance to avoid severe penalties and legal consequences as the Competition Commission has robust statutory powers to investigate breaches of the Competition Ordinance,” he said.
“Businesses need to put in place proper procedures and training for their staff, so that they are aware of their legal obligations in such situations and ensure that compliance is taken with the appropriate seriousness.”

The employee faced a maximum penalty of HK$1 million (approx. US$128,500) and imprisonment for up to two years, in the first demonstration of the Competition Ordinance’s powers to fine people for obstruction, false statements and failing to comply with police requests for information.

Hong Kong Commercial Cleaning Company, the woman’s employer, paid a HK$10.96 million fine in December to settle allegations that it had engaged in cartel conduct.

Man Shun Hong Kong & Kln Cleaning Company was fined HK$11.31 million in January, after it was found to have exchanged commercially sensitive information with the employee’s company.