COMPETITION LAW IN SINGAPORE – RECENT DEVELOPMENTS
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