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

22 January 2016

(View Media Release in PDF)

1.    The Competition Commission of Singapore (“CCS”) is conducting a public consultation from 22 January to 5 February 2016 and invites interested parties to provide feedback on the proposed commitment by a supplier of a specific brand of lift parts (the “Company”) in relation to amending its practice of withholding supply of lift spare parts, of a specific brand, to companies seeking to procure these parts to provide lift maintenance services for the relevant lifts in Singapore.

2.    CCS received a complaint in relation to the Company withholding supply of lift spare parts of a specific brand to a lift maintenance company, for the purposes of servicing and maintaining lifts located in a Housing Development Board (“HDB”) estate.  Under the law, a dominant firm with substantial market power is prohibited from preventing or impeding competition through withholding key products or services that are essential input to other businesses[1]. CCS’s investigation revealed that such conduct by the Company would likely restrict competition in the market for the provision of lift maintenance services as the Company is the only supplier of that specific brand of lift spare parts in Singapore.

3.    In cooperation with CCS’s investigation, the Company has provided CCS with a voluntary commitment to amend its business practices to address CCS’s concerns.

4.    The voluntary commitment provides that the Company will undertake to sell lift spare parts of the specific brand to a Purchaser subject to certain terms and conditions, (“Terms and Conditions of Supply”) (collectively “the Proposed Commitment”).

5.    In summary, the Terms and Conditions of Supply relate to the following issues:

    (a)    The purchasing terms such as pricing, delivery time and warranty period;

    (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 through the Purchaser's negligence;

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

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

The full list of the Terms and Conditions of Supply can be found in Annex A.

6.    The Proposed Commitment may be released and/or reviewed by CCS in the event of any material change in market conditions for the supply of lift spare parts and/or upon a request or application to CCS by the Company.

Public Consultation
7.    CCS is seeking feedback to assist its consideration of the Proposed Commitment, its determination of whether the Proposed Commitment will sufficiently address the competition concerns in relation to the supply of the relevant lift spare parts and on whether the Terms and Conditions of Supply attached to the Proposed Commitment are reasonable and necessary. Following the market consultation, CCS will decide whether to accept or reject the Proposed Commitment.

8.    More information on the public consultation and the full details of the Proposed Commitment can be accessed and downloaded from the CCS website at www.ccs.gov.sg under the section “Public Register and Consultation”. The closing date for submissions is 5 February 2016. If the submission/correspondence contains confidential information, please also provide CCS with a non-confidential version of the submission or correspondence.

About 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. Grace Suen
Assistant Director
Strategic Planning Division
Competition Commission of Singapore
Email: grace_suen@ccs.gov.sg
DID: 6325 8216 / 9835 8601