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CASE TEAM MEMBERS
Terence Seah, Yeo Hui Chuan,
Jayme Leong, Qiu Huixiang,
Timothy Chew
CCS Probes Restrictive Industry Practices in the
Supply of Lift Spare Parts in HDB Estates
Following a complaint received,
CCS investigated the allegation
that several companies were
refusing to supply lift spare
parts for maintenance of lifts in
Housing and Development Board
(“HDB”) estates. Following the
commencement of investigations,
E M Services Pte. Ltd. (“E M
Services”) approached CCS
to provide commitments to
supply the lift spare parts of the
Shenyang Yuanda Intellectual
Industry Group Co., Ltd.
(“BLT”) brand to third-party
lift maintenance contractors in
Singapore. CCS considers that the
commitments will provide more
options for HDB lift maintenance
as town councils can choose to
call for a single tender for lift
maintenance across various lift
brands, instead of contracting
multiple parties. CCS will continue
its other investigations to ensure
access to essential lift spare parts
for third-party lift maintenance
contractors and to effectively
compete for lift maintenance of
these other brands of lifts.
.
SERVICES
as price, technical competency,
response time, relevant
experience, track record and
availability of spare parts.
Across Singapore, there are over
20,000 lifts installed in HDB
estates and majority of them are
currently being maintained by the
Original Equipment Manufacturers
(“OEMs”). The inability of third-
party lift maintenance contractors
to source for original parts poses
operational issues for them.
INDUSTRY BACKGROUND
Lifts installed in HDB estates
typically comprise multiple
brands. Town councils, which are
required to conduct regular lift
maintenance, can choose to either
appoint the original lift installers
to undertake maintenance
services or call for a tender to
invite companies, including
third-party lift maintenance
contractors, to provide the said
services. The selection of the latter
is based on many factors, such
RESTRICTIVE INDUSTRY
PRACTICES
If the third-party lift maintenance
contractors cannot obtain the
proprietary lift spare parts for
each lift brand, town councils
would be reluctant to choose
them over the original lift
installer, even if the contractor
can offer the services at a
lower cost and a better service
quality. Suppliers typically have
the freedom to decide whom
they want to do business with.
However, a refusal by a dominant
or sole supplier to supply certain
essential products or services,
that cannot otherwise be
obtained, can be illegal and
in breach of section 47 of the
Competition Act. Refusal to
provide proprietary but essential
lift spare parts to third-party lift
maintenance companies by any
lift company or distributor may
prevent other lift maintenance
contractors from effectively
competing for contracts to
maintain and service lifts of that
particular brand in Singapore.
ACTIONS TAKEN
ANNUAL REPORT 2016
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