2. Singapore Competition Act

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Questions and Answers

What is a primary purpose of Section 34 of the Competition Act 2004 in Singapore?

Facilitating anti-competitive mergers

Prohibiting agreements that restrict competition (correct)

Preventing monopolistic behaviors

Promoting fair trade practices

Which of the following does NOT fall under the prohibitions regime regarding competition in Singapore?

Price-fixing arrangements

Horizontal mergers with no market share increase (correct)

Abuse of market dominance

Concerted practices leading to market distortions

In which section of the Competition Act 2004 is the concept of 'abuse of dominant position' addressed?

Section 47 (correct)

Section 34

Section 54

Section 60

What is an intended effect of anti-competitive agreements as defined by the Competition Act?

Restricting competition Signup and view all the answers

Which section of the Competition Act 2004 deals with merger control in relation to substantial lessening of competition?

Section 54 Signup and view all the answers

What type of information exchange is considered potentially harmful to competition?

Information exchange that reduces uncertainties in competition Signup and view all the answers

Which of the following best describes non-commercially sensitive information?

Historic data that is aggregated and does not relate to current strategies Signup and view all the answers

What aspect is crucial in determining whether an agreement is horizontal or vertical regarding competition law?

The nature of the agreement itself rather than the parties' relationship Signup and view all the answers

Which situation describes a hub-and-spoke arrangement in competition law?

An upstream manufacturer and multiple downstream distributors forming a collective agreement Signup and view all the answers

What does the Vertical Agreements Exclusion under Section 34 imply about vertical relationships?

They may still be considered horizontal based on the agreement's nature Signup and view all the answers

Which of the following actions would most directly be considered an anti-competitive agreement under Section 34?

Setting a minimum price for a product Signup and view all the answers

What was the penalty imposed on Fresh Chicken Distributors for their price-fixing and non-compete agreements?

S$1,522,354 Signup and view all the answers

What is the primary characteristic of market-sharing agreements?

They typically allocate geographical areas or specific categories of consumers. Signup and view all the answers

In which year did the case concerning the exchange of commercially sensitive information between competing hotels occur?

2018 Signup and view all the answers

Which of the following is a form of hardcore conduct under anti-competitive agreements?

Limiting production output through quotas Signup and view all the answers

Which case involved the price-fixing of monthly salaries of new Indonesian Foreign Domestic Workers?

CCS 500/001/11 Signup and view all the answers

Which scenario exemplifies bid-rigging?

One company rotates the bids it submits for contracts among competitors. Signup and view all the answers

What did the participation without opposition in a meeting with an anti-competitive purpose signify, according to the CCS?

Tacit approval of unlawful initiatives Signup and view all the answers

Which type of information is most likely to cause competitive harm when shared between companies?

Proprietary data including prices and production schedules Signup and view all the answers

What is the effect of agreements that fall under the 'by object' category?

They are presumed to have an appreciable adverse effect on competition. Signup and view all the answers

What financial penalty was imposed on capacitor manufacturers involved in the global cartel for price-fixing?

S$19,552,464 Signup and view all the answers

Which of the following was a key feature of the EBAA case regarding express bus agencies?

Minimum selling prices and fuel charges Signup and view all the answers

Which of the following is an example of an anti-competitive agreement that prevents competition?

Companies exchanging sensitive information about individual future prices. Signup and view all the answers

Which of the following agreements is likely to be considered a standardization agreement?

A coalition of companies deciding on consistent product quality standards Signup and view all the answers

What was the maximum amount customers paid for the EIC coupon in 2008, depending on destinations?

$16 Signup and view all the answers

What does the case CCCS 700/002/14 primarily focus on?

Information exchange among competitors Signup and view all the answers

Study Notes

### Anti-competitive Agreements

Singapore's Competition Act 2004 prohibits agreements between companies that prevent, restrict, or distort competition in Singapore.
The law considers both the "object" and "effect" of the agreement.

Hardcore Conduct

Price-fixing: Discussing components of price, including pricing policy, promotions, and setting maximum or minimum prices.
Market-sharing: Allocating geographical areas or categories of consumers/services.
Bid-rigging: Includes cover pricing, bid-suppression, bid-rotation, and market division.
Output limitation: Fixing production levels or using quotas.
Information sharing: Sharing sensitive information, including price, cost, capacity, proprietary data/information, and commercial plans.

Sharing specific types of information can be considered anti-competitive if it reduces uncertainties inherent in competition.
Information sharing can be acceptable if it is:
- Publicly available
- Non-commercially sensitive
- Non-strategic
- Sufficiently historic
- Sufficiently aggregated

Vertical Agreements Exclusion

Agreements between businesses in a vertical relationship (e.g., manufacturer and distributor) do not automatically exclude them from the Competition Act.
The key is the nature of the agreement, regardless of the relationship between the parties.
Hub-and-spoke practices can be considered horizontal agreements, even if they involve vertical relationships.

Case Studies

CCCS 500/7002/14: Fresh chicken distributors were penalized for price-fixing and non-compete agreements.
CCCS 700/002/14: Hotels were fined for exchanging commercially sensitive information.
CCS 700/002/13: Capacitor manufacturers were fined for global price-fixing and information exchange.
CCS 500/001/11: Employment agencies were penalized for price-fixing monthly salaries for Indonesian foreign domestic workers. The case highlights that passive participation in a meeting with an anti-competitive purpose is considered tacit approval of the unlawful activity.
CCS 500/003/08: The Express Bus Agencies Association (EBAA) case involved setting minimum selling prices and fuel and insurance charges.

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Description

Test your knowledge on the Singapore's Competition Act 2004 and its regulations concerning anti-competitive agreements. Explore the concepts of hardcore conduct, including price-fixing, market-sharing, bid-rigging, and more. Assess your understanding of acceptable and unacceptable practices under the law.