Competition Law at Singapore
Certainly! Here’s an overview of Competition Law in Singapore:
Competition Law in Singapore
1. Legal Framework
Singapore’s competition law is primarily governed by the Competition Act (Chapter 50B), which was enacted in 2004. The Act is designed to promote healthy competition in Singapore's markets and to prevent anti-competitive practices.
2. Regulatory Authority
The Competition and Consumer Commission of Singapore (CCCS) is the statutory body responsible for enforcing the Competition Act.
CCCS investigates and takes action against anti-competitive behavior and reviews mergers and acquisitions.
3. Key Provisions
a) Prohibition of Anti-Competitive Agreements (Section 34)
This includes agreements between businesses that have the object or effect of substantially preventing, restricting, or distorting competition.
Examples include price-fixing, market sharing, bid-rigging, and output restrictions.
Both horizontal agreements (between competitors) and certain vertical agreements (between different levels of the supply chain) can be scrutinized.
b) Abuse of Dominance (Section 47)
Companies with a dominant position in the market must not abuse their market power.
Abuse can include predatory pricing, limiting production to the detriment of consumers, or applying dissimilar conditions to equivalent transactions.
c) Merger Control (Section 54)
Certain mergers or acquisitions that meet turnover thresholds must be notified to the CCCS for review before completion.
The CCCS assesses whether the merger substantially lessens competition in Singapore.
4. Exemptions
Some agreements may be exempted if they contribute to improving production or distribution, or promote technical or economic progress, without eliminating competition.
5. Enforcement and Penalties
The CCCS has investigative powers, including conducting dawn raids.
Penalties for infringement can include financial penalties of up to 10% of a company’s turnover for each year of infringement (up to three years).
The CCCS can issue cease and desist orders, accept commitments, or require divestment.
The law also allows for private actions and civil damages claims by parties harmed by anti-competitive conduct.
6. Consumer Protection Interface
While competition law focuses on market competition, Singapore also has separate consumer protection legislation (Consumer Protection (Fair Trading) Act) administered by the Consumers Association of Singapore (CASE).
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