The Buck Stops Here – Contractors Held Fully Liable For Subcontractors In Hong Kong Cartel – JD Supra

The Buck Stops Here – Contractors Held Fully Liable For Subcontractors In Hong Kong Cartel – JD Supra

This choice 1 sfinishs A clear message to companies thOn the revery of the Ordinance Might be far wider than what some Might think about, and That corporations Shall be collectively And a quantity of completely differently liable with their subcontractors forming The identical enterprise (i.e. financial unit) that has contravened rivals regulation. This alert discusses the Tribunal’s selections, the Courtroom’s reasoning on attraction and The smart steps That corporations can take to minimise being caught by the Ordinance As a Outcome of of conduct of their enterprise halfners.

Competition Tribunal selections and the HKCC’s attraction

The primary choice attractioned wAs a Outcome of the landmark choice on penalties Inside the W Hing case. 2 In That choice, the Tribunal for the first time laid dpersonal the 4-step approfessionalach in figuring out monetary penalties beneath the Ordinance (see our alert right here). Amongst completely different problems, the Tribunal gave a one-third discount of The backside quantity (i.e. a base quantity linked to The quantity of commerce affected by the contravention of the rivals rule) To three respondents.

For two of the respondents, the Tribunal gave the discount on The Idea that They Did Inimmediately halficipate Inside the anti-aggressive conduct however turned liable by letting their licence to a subcontractor who engaged Inside the infringing conduct. For the reprimarying respondent, the Tribunal gave the discount on The concept thOn the renovations have been truly carried out by ancompletely different in that respondent’s identify. In giving the discount, the Tribunal thought-about numerous factors Similar to a Outcome of the advert-hoc and short-term affiliation of the contractors and the subcontractors, The lack of the respondents to recoup half or All of the …….

Source: https://www.jdsupra.com/legalnews/the-buck-stops-here-contractors-held-4828191/