What to do if you or your company has breached competition law?
Those involved in cartel conduct may face severe penalties under the Competition Ordinance. However, the Commission will not commence proceedings in the Competition Tribunal against the first company or individual who self-reports the cartel conduct to the Commission and meets all other requirements for receiving leniency under the Commission’s Leniency Policy.
What are the penalties for contraventions?
Where a contravention of a competition rule is proven, the Competition Tribunal has a broad range of sanctions available to levy against the contravening party. These include:
- Pecuniary penalty (up to 10% of the turnover of the business obtained in Hong Kong for each year of the contravention, up to a maximum of three years);
- Director disqualification order;
- Injunction orders and orders requiring certain actions to be taken; and/or
- Order to pay the Commission’s investigation and litigation costs.
How can I reduce or even avoid the penalties I am facing?
Apply for leniency
As noted above, the Commission will not commence proceedings in the Competition Tribunal against the first company or individual who self-reports cartel conduct to the Commission and meets all the other requirements for receiving leniency. This includes not seeking a penalty or an order declaring that the successful leniency applicant has contravened competition law.
Employees and officers of an undertaking that obtains leniency will also be protected from proceedings if they cooperate with the Commission in its investigation.
To learn more, see the Commission’s Leniency Policy for Undertakings/Leniency Policy for Individuals
How to apply for leniency
- Call Leniency Hotline at +852 3996 8010 between 8 am and 6 pm, Hong Kong time, Monday to Friday (excluding public holidays)
- Send an email to Leniency@compcomm.hk
Apply for cooperation
Cartel members not eligible for leniency under the leniency policies may also cooperate with the Commission in exchange for penalty reductions.
To learn more, see the Commission’s Cooperation Policy.
Eight excuses for cartel conduct that will NOT work
The Commission has heard many excuses for conduct that breaches competition law.
Set out below are eight of them and explanations about why they will not work.