Hong Kong’s competition watchdog has raided 11 offices and homes over alleged bid-rigging for contracts to supply virtual reality (VR) systems to schools and non-profit organisations, with the deals valued at HK$10 million.

The Competition Commission revealed on Friday that it had secured warrants and searched the 11 premises, including those of several IT service and equipment providers, other firms and the residences of several suspects, in an operation the day before codenamed “Lens”.

The companies were accused of engaging in bid-rigging, price-fixing, market-sharing and exchange of competitively sensitive information when providing quotations for VR equipment and software installation services to various schools and non-profit organisations, the watchdog said. The contracts were valued at around HK$10 million (US$1.3 million).

The commission said the searches originated from earlier complaints alleging that some IT suppliers had engaged in anti-competitive conduct when submitting quotations for VR systems, such as preparing tender documents for other suppliers and companies so they could act as sham bidders.

“The commission followed up on the case and was satisfied that there was reasonable cause to suspect that a contravention of a competition rule had taken place,” it said. The watchdog said it would proceed with its investigation and requested the relevant parties to produce documents and information.

“Rapid advancements in VR technology have led to its widespread usage across various fields,” it added.

“This case concerns schools and non-profit organisations, and the suspected anti-competitive conduct involved may ultimately result in reduced choices or increased costs for these organisations, thereby compromising the efficient use of public resources.”