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Commitments under section 60 of the Competition Ordinance in relation to car warranties

Case Number EC/02UB
Parties Cartel Motors Limited (“Cartel Motors”), Dah Chong Hong Holdings Limited (“DCH”), Inchcape International Holdings Limited (“Inchcape”), Kam Lung Motor Group Limited (“KLM”), Motor Image (HK) Limited (“Motor Image”), Sime Darby Motor Group (HK) Limited (“Sime Darby”) and Vang lek Holdings Limited (“Vang lek”). All together are referred to as the “Parties”.
Relevant Documents Proposed Commitments

Press Release: Competition Commission consults on proposal to accept commitments offered by seven car distributors

Notice issued under section 2, Schedule 2 of the Ordinance regarding the Commission’s proposed acceptance of the Proposed Commitments

Annexes to the Notice: Proposed Commitments from each of Cartel Motors, DCH, Inchcape, KLM, Motor Image, Sime Darby and Vang lek

Questions and Answers to the Proposed Commitments

Commitments

Press Release: Competition Commission accepts commitments offered by seven car distributors to remove car warranty restrictions

Notice issued under section 4, Schedule 2 of the Ordinance regarding the Commission’s acceptance of the Commitments

Annexes to the Notice: final Commitments from each of Cartel Motors, DCH, Inchcape, KLM, Motor Image, Sime Darby and Vang lek
Representations received
on Proposed Commitments
R1 - Albert Yip (02.08.2022)

R2 - K W Yung (02.08.2022)

R3 - KW C (02.08.2022)

R4 - Chin Ching Chan (03.08.2022)

R5 - Joe Lee (03.08.2022)

R6 - Calvin Lam (04.08.2022)

R7 - Hong Kong Vehicle Repair Merchants Association (12.08.2022)

R8 - Travis Ng, Economic Research Centre, Hong Kong Institute of Asia Pacific Studies, The Chinese University of Hong Kong (15.08.2022)

R9 - Consumer Council (15.08.2022)
Current Status The Parties in this matter offered Proposed Commitments under section 60 of the Ordinance in relation to their agreements with seventeen car manufacturers. The Commission considered the Proposed Commitments appropriate to address its concerns about a possible contravention of the first conduct rule and therefore proposed to accept them.

On 1 August 2022, the Commission published a notice of its proposed acceptance, as required by section 2 of Schedule 2 to the Ordinance, and sought representations from interested parties.

The deadline for representations was 15 August 2022. The Commission received representations from nine parties within this deadline.

Having carefully considered these representations, the Commission does not consider that there is anything that would make it inappropriate to accept the Proposed Commitments from the Parties.

Following the commencement of the consultation, the Commission agreed with Sime Darby to make a minor amendment of recital 3 of the Commitment.

The Commission decided to accept the Commitments and on 10 October 2022, issued a notice of acceptance. The Commitments are published on the Commitments Register.