In relation to the report from the neighbouring region in connection with the alleged bid rigging by insurance companies in the Macao SAR, the Monetary Authority of Macao (“AMCM”) would like to point out that, though no complaints nor queries were received from the tendering entities, it has already followed up the allegations of this report, and met the insurance sector to emphasize that they must comply with the existing laws and regulations.
Though the bidding behavior of insurance companies is the commercial behavior between the tendering entity and the insurance companies, Articles 153 to 173 of the Commercial Code explicitly prohibits all behaviour which prevents competition, violates the principles of competition or restricts competition. All behaviour which can be objectively shown as violations of the economic activity regulations and integrity practices of competitive behaviour etc. constitute unfair competition behaviour. The victim may take legal actions in respect of the unfair competition behaviour, and the party committing such unfair competition behaviour shall compensate the victims against any losses so caused.
Moreover, in the case of tenders in the Macao SAR, in accordance with Article 38 (c) of Decree No. 63/85 / M of July 6, "Procedures for the Acquisition of Goods and Services", if it is presumed to a large extent that there is a conspiracy between bidders, the tendering entity has the right not to offer the tender.
On the other hand, according to the provisions of Article 120 of Decree-Law No. 27/97/M, 30 June, “Macao Insurance Ordinance”, any violations of the norms of this law, the regulatory provisions contained in the notices or circulars of the AMCM, including acts and omissions which disturb or frustrate the normal conditions of operation of the insurance market shall constitute infringements punishable by sanctions under the provisions of Article 121, such as, fine, suspension of the administrative body or other body with similar functions for a period of from 6 months to 5 years, temporary suspension, partial or total of the authorisation granted for the carrying on of insurance activity, or revocation of the authorisation for the carrying on or insurance activity depending on the gravity of the circumstances. As such, in relation to the unlawful behaviour of the insurance companies, there are regulatory measures in place in the Macao Insurance Ordinance.