Supply of Lift Spare Parts For Maintenance of Lifts: CCCS Consults on Proposed Voluntary Commitments by Chevalier and Fujitec Singapore

11 January 2019

1. The Competition and Consumer Commission of Singapore (“CCCS”) is conducting a public consultation from 11 to 24 January 2019 to invite feedback on two proposed commitments separately provided by (i) Chevalier Singapore Holdings Pte Ltd (“Chevalier”) in relation to the supply of spare parts for the Toshiba Elevator and Building Systems Corporation and IFE Elevators Co., Ltd brands of lifts, and (ii) Fujitec Singapore Corporation Ltd (“Fujitec Singapore”) in relation to the supply of spare parts for the Fujitec brand of lifts.

Background

2. CCCS has been investigating alleged refusals to supply lift spare parts for the maintenance of lifts in HDB estates.^[1] CCCS understands that there could potentially be cost savings in engaging a third-party lift maintenance contractor for multiple brands as compared to having to procure lift maintenance services from each original lift installer. 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.

3. To address CCCS’s competition concerns, Chevalier and Fujitec Singapore have each separately proposed voluntary commitments to CCCS. The voluntary commitments provide that Chevalier and Fujitec will undertake to sell lift spare parts (with software if applicable) of the relevant brands to a purchaser subject to certain terms and conditions, (“Terms and Conditions of Supply”).

4. 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 and has been appointed to service the said lifts;
c. Clarifying liability in the event of any mishaps, injuries or loss that arise; and
d. Ensuring that the lift spare parts purchased are not modified.

Public Consultation

5. CCCS is inviting public feedback on the proposed commitments from Chevalier and Fujitec Singapore, to assist with its assessment 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 public consultation, CCCS will decide whether to accept or reject each of the proposed commitments.

6. More information on the public consultation and the full details of the proposed commitments (alongside the associated Terms and Conditions of Supply) can be accessed and downloaded from the CCCS website at www.cccs.gov.sg under the section “Public Register and Consultation”. The closing date for submissions is 24 January 2019. Please indicate clearly in your submission whether your feedback relates to Chevalier’s commitments or Fujitec’s commitments. If the submission/correspondence contains confidential information, please also provide CCCS with a non-confidential version of the submission or correspondence.

About the Competition and Consumer Commission of Singapore

The Competition and Consumer Commission of Singapore (“CCCS”) is a statutory board of the Ministry of Trade and Industry. CCCS administers and enforces the Competition Act (Cap. 50B) which empowers CCCS to investigate and adjudicate anti-competitive activities, issue directions to stop and/or prevent anti-competitive activities and impose financial penalties. CCCS is also the administering agency of the Consumer Protection (Fair Trading) Act (Cap. 52A) or CPFTA which protects consumers against unfair trade practices in Singapore. Our mission is to make markets work well to create opportunities and choices for business and consumers in Singapore.

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

^[1] Refer to CCCS’s media release dated 28 March 2018