COMPETITION LAW IN SINGAPORE – RECENT

DEVELOPMENTS

OverviewOverview

• Rationale

• Guiding principles

• Scope of the Act

• Establishment of the Competition Commission of Singapore

• Implementation approach

– Transitional period and phased implementation

– Education and outreach programmes

– Guidance to businesses and industry

• Working with sector-specific regulators

• Capacity building

RationaleRationale

• Competition as a key tenet of Singapore’s economic strategy.

– Develop a pro-enterprise environment

– Enhance efficient functioning of markets

– Strengthen our economic competitiveness

Guiding PrinciplesGuiding Principles

• International best practices; local circumstances

• Minimise regulatory costs

• Focus on anti-competitive activities with an appreciable adverse effect on markets in Singapore. Exceptions: – Agreements with net economic benefits

– Vertical agreements

ScopeScope

• Applies to all undertakings – “any person, being an individual, a body corporate, an

unincorporated body of persons or any other entity, capable of carrying on commercial or economic activities relating to goods and services”

– e.g. individuals operating as sole traders, businesses, companies, firms, partnerships, societies, co-operatives, business chambers, trade associations, non-profit organisations…

• Government and Statutory Bodies excluded

Implementation approachImplementation approach: : Transitional Transitional Period and Phased ImplementationPeriod and Phased Implementation • Transitional period of one year • Phased implementation

– Phase I: Jan 2005 – Establishment of the CCS – Phase II: Jan 2006 – Provisions on anti-competitive

agreements and abuse of dominance came into force

– Phase III: M&A provisions to come into force at least 12 months after Phase II

• More time to comply with the Act

Establishment of the Competition Establishment of the Competition Commission of Singapore Commission of Singapore ((‘‘CCSCCS’’))

• CCS: – Administer and enforce the Competition Act – Statutory Board under Singapore Ministry of Trade

and Industry

• Powers of the CCS – Investigate – Make decisions

– Impose sanctions

• Competition Appeal Board

Education and Outreach Education and Outreach ProgrammesProgrammes

• Education and Outreach – Conferences – Seminars – Website: www.ccs.gov.sg

• Provide Inputs/advice to other Ministries and Government agencies

Guidance to Businesses and IndustryGuidance to Businesses and Industry

• Guidelines • Notification for guidance or decision

Guidelines

• CCS Guideline On: – The Major Provisions (Summary Guideline) – The Section 34 Prohibition – The Section 47 Prohibition – Market Definition – The Powers Of Investigation – Enforcement – Lenient Treatment For Undertakings Coming Forward

With Information On Cartel Activity Cases – Filing Notifications For Guidance Or Decision – Transitional Arrangements – The Appropriate Amount Of Penalty – The Treatment Of Intellectual Property Rights

Notification for Guidance or DecisionNotification for Guidance or Decision

• Notifications are on voluntary basis • Aim to provide certainty to businesses

• Undertakings who notify an agreement will usually be immune from financial penalties while CCS considers the notification

Working Working with sector-specific regulators

• Certain sectors excluded from the Act • Considered on a case-by-case basis.

– Who is best placed to deal with the case effectively, in accordance with its powers?

– “Dealing effectively” means having the power to carry out the necessary investigation into the alleged anti-competitive conduct and impose appropriate remedies.

Capacity buildingCapacity building

• Systems and processes • Training programmes • Staff attachments

Thank you

www.ccs.gov.sg