Competition Commission of Singapore Annual Report 2016/17

CCS Revises Guidelines to Ensure a

Level Playing Field for Businesses

PUBLISHED

LEGISLATION

CCS has published a revised set of Guidelines, which came into

effect on 1 December 2016. This follows a thorough review and

public consultation on the proposed changes to the Guidelines.

The revised Guidelines, which take into account international best

practices, will make it easier for businesses, consumers and other

stakeholders to understand how CCS will administer and enforce the

Competition Act.

BACKGROUND

CCS issued its first set of Guidelines in 2007. The Guidelines outline

how CCS will administer and enforce the provisions under the

Competition Act and the current set of revised Guidelines reflects the

first comprehensive revision to the Guidelines since then, taking into

account 10 years of experience and enforcement by CCS.

REVISED GUIDELINES

Having reviewed the comments received from the consultation, CCS

has revised and published the following Guidelines (collectively, the

“revised Guidelines”) which came into effect on 1 December 2016:

CCS Guidelines on the Substantive Assessment of Mergers 2016;

CCS Guidelines on Lenient Treatment for Undertakings Coming

Forward with Information on Cartel Activity 2016;

CCS Guidelines on the Section 34 Prohibition 2016;

CCS Guidelines on the Section 47 Prohibition 2016;

CCS Guidelines on Filing Notifications for Guidance

or Decision with respect to the Section 34

Prohibition and Section 47 Prohibition 2016;

CCS Guidelines on the Appropriate Amount of

Penalty 2016;

CCS Guidelines on the Powers of Investigation 2016;

CCS Guidelines on Enforcement 2016; and

CCS Guidelines on the Major Prohibitions 2016.

KEY BENEFITS

Our Guidelines are an important

point of reference on how we apply competition law

in Singapore, covering the processes and procedures

we have in place. The revised Guidelines, which

take into account international best practices, will

make it easier for businesses, consumers and other

stakeholders to understand how CCS will administer

and enforce the Act.

MS SERENE SEET

Principal Legal Counsel, Legal Division

To learn

more about

the revised

guidelines,

scan the QR

code to visit

the CCS

website.

NEW FAST TRACK PROCEDURE

For a shorter and faster investigation process, a new Fast

Track Procedure was introduced to allow businesses under

investigation to enter into an agreement with CCS where

they will admit their liability early by acknowledging their

participation in an anti-competitive activity. In return, they will

receive a reduction on the financial penalty to be imposed.

IMPROVED CLARITY AND GUIDANCE ON HOW CCS

CALCULATES FINANCIAL PENALTIES

The financial penalty will now be calculated based on the

financial year preceding the date when the undertaking’s

participation in the infringement ended, rather than basing it

on the financial year preceding the issuance of CCS’s decision.

This provides greater certainty to businesses under investigation

as the relevant financial year will no longer depend on when CCS

issues its decision.The quantum of the financial penalty would

therefore be more proportionate to the turnover earned by the

parties when they had engaged in the infringing conduct.

SIMPLIFIED PROCESSES

Changes have been made to the

Guidelines to simplify processes and

clarify CCS’s approach in assessing

various conduct. This includes

the simplification of various

notification forms and procedures.

Businesses will also know upfront

what to expect and what will

be required by CCS during the

investigation process.

COMPETITION COMMISSION OF SINGAPORE