6 Pest Control Companies give Assurances on Pricing

Media Statement Issued on 8 September 2008

1. The Competition Commission of Singapore (“CCS”) has received assurances from six pest control companies1 (authorised applicators of a termiticide called Agenda) that the prices for their services will be decided by the companies independently. 
2. After the CCS’ investigations into the bid rigging and collusive tendering arrangements amongst the six companies, that resulted in an infringement decision in January 2008 and their payment of a total financial penalty of S$262,759.66, the CCS investigated the companies’ practice of charging a minimum price of $12 per square metre and $70 per linear metre respectively for pre-construction and post-construction termite services using Agenda. This is a matter, separate from the earlier investigations and infringement decision in the bid rigging/tender collusion arrangements.
3. In light of the assurances provided by the parties, the CCS has decided not to pursue the matter as the objective of deterring the parties from participating in anti-competitive arrangements was achieved with the penalties imposed on them pursuant to the earlier infringement decision. 
4. The CCS has informed the companies that it will take appropriate action if there is a breach of the assurances.