Supply of Lift Spare Parts for Maintenance of Lifts in HDB Estates: CCS Consults on Proposed Voluntary Commitments by Suppliers

15 November 2017

The Competition Commission of Singapore (“CCS”) is conducting a public consultation from 15 to 28 November 2017 and invites interested parties to provide feedback on two proposed commitments separately provided by (i) BNF Engineering (S) Pte Ltd (“BNF”) in relation to the supply of spare parts for BNF brand of lifts, and (ii) C&W Services Operations Pte Ltd (“CWO”) in relation to the supply of spare parts for Ulift brand of lifts.
As highlighted in CCS’s media release dated 14 July 2016, CCS has been investigating alleged refusals to supply lift spare parts for the maintenance of lifts in HDB estates. If a lift company or distributor does not provide proprietary but essential lift spare parts to third-party lift maintenance contractors, other lift maintenance contractors may be prevented from effectively competing for contracts to maintain and service lifts of that particular brand in Singapore.
To address CCS’s competition concerns, BNF and CWO have each separately proposed voluntary commitments to CCS. The voluntary commitments provide that BNF and CWO will undertake to sell lift spare parts of the relevant brands to a purchaser subject to certain terms and conditions, (“Terms and Conditions of Supply”).
In summary, the Terms and Conditions of Supply relate to the following issues:

(a)   The terms of supply on a fair, reasonable and non-discriminatory basis;

(b)   Ensuring that the purchaser is adequately qualified to service the said lifts;

(c)    Clarifying liability in the event of any mishaps, injuries or loss that arise;

(d)   Ensuring that the lift spare parts purchased are not modified or used for other lift brands; and

(e)   Seeking consent from the owner of the relevant lift to be repaired.

Public Consultation
CCS is seeking feedback to assist its consideration of the proposed commitments from BNF and CWO, its determination of whether each of the proposed commitments will sufficiently address the competition concerns in relation to the supply of the relevant lift spare parts, and whether the Terms and Conditions of Supply attached to each proposed commitment are reasonable and necessary. Following the market consultation, CCS will decide whether to accept or reject each of the proposed commitments.
More information on the public consultation and the full details of the proposed commitments can be accessed and downloaded from the CCS website under the section “Public Register and Consultation”. The closing date for submissions is 28 November 2017. Please indicate clearly in your submission whether your feedback is in relation to BNF’s commitment or CWO’s commitment. If the submission/correspondence contains confidential information, please also provide CCS with a non-confidential version of the submission or correspondence.

The Competition Commission of Singapore (CCS)

CCS is a statutory board established under the Competition Act (Chapter 50B) on 1 January 2005 to administer and enforce the Act. It comes under the purview of the Ministry of Trade and Industry. The Act empowers CCS to investigate alleged anti-competitive activities, determine if such activities infringe the Act and impose suitable remedies, directions and financial penalties.

For more information, please visit www.ccs.gov.sg.

For media clarifications, please contact:

Ms. Loy Pwee Inn
Senior Assistant Director
International and Strategic Planning Division
Email: loy_pwee_inn@ccs.gov.sg
DID: 6325 8313

Ms. Shamsiah Jemain
Executive
International and Strategic Planning Division
Email: shamsiah_jemain@ccs.gov.sg
DID: 6325 8206