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Dominance and Conduct
CCCS provides guidance on dominance and conduct, outlining how businesses should avoid abusing market power to ensure fair competition and protect consumer interests.
Last updated 27 May 2025
Understanding Abuse of Dominance
What is an abuse of dominance and why is it bad?
Being a dominant player in a market is by itself not anti-competitive, nor does the Competition Act prevent businesses from striving to achieve it based on their own merits. A dominant position achieved or maintained through conduct arising from efficiencies, such as through successful innovation or economies of scale, will not be regarded as an abuse of dominance. However, when a dominant business in the market seeks to protect, enhance or perpetuate its dominant position in ways unrelated to competitive merit, it unduly restricts competition, and hurts consumers and businesses. Such conduct may constitute an abuse of dominance, and infringe Section 47 of the Competition Act.
Recognising abuse of dominance?
A two-step test is used to assess whether there is abuse of dominance:
Test 1: Whether the business is dominant. A market leader is likely to be dominant when one or more of these factors are satisfied:
It has a market share of 60% and above
There are few or no competitors that its customers can go to
Its customers do not have significant bargaining power
Newcomers find it difficult to enter the market for instance, because of high capital cost or technological barriers
Test 2: If it is dominant, whether it is abusing that dominant position in a market. Being dominant is not against the law. But some dominant businesses may either block rivals from competing against it or stop rivals from entering the market. Abusive tactics may include:
Exclusive dealing: When the dominant business binds other businesses into working exclusively with itself
Predatory pricing: When it sets below-cost prices to drive competitors out of the market
Discount schemes: When discounts are conditional on buyers purchasing only or primarily from the dominant business and not from other competitors
Tying and bundling: When it makes the purchase of one product conditional on the purchase of other products and services from the dominant business
Refusal to supply: When it withholds key products or services essential to other businesses.
Other Useful information
Where can I find more information?
1) CCCS Guidelines – Please refer to CCCS Guidelines on the Section 47 Prohibition.
2) Public Register – The public register carries a full listing of CCCS’s decisions.
3) FAQs – You may also find the answer to your question(s) in our FAQ section.
What can CCCS do?
CCCS has substantial investigation powers which it can exercise if there are reasonable grounds for suspecting that the Competition Act has been infringed, including the ability to impose interim measures directions to prevent serious irreparable damage or protect the public interest whilst investigations are ongoing. In the event of an infringement, CCCS can impose substantial financial penalties of up to 10% of the turnover of the business in Singapore for each year of infringement, up to a maximum of 3 years. CCCS also has powers to issue directions requiring infringing undertakings to stop or modify the activity or conduct.
What can I do?
Report
If you know of any anti-competitive agreement, please file a complaint with CCCS. In appropriate cases, a monetary reward can be paid to informants who are whistle-blowing on a cartel activity.
Seek guidance or decision
If you are concerned that an agreement may violate the Act, you can apply to seek guidance or decision from CCCS. You stand to enjoy provisional financial immunity during the period when CCCS is considering your case.
Educate yourself
You should always educate yourself and your staff. Use the materials in this website and/or attend CCCS’s outreach events.
For businesses or trade associations that wish to request CCCS to conduct an outreach session, please reach out here.
Cooperate with CCCS
There may also be times when CCCS approaches you to assist with our investigations. You are advised to always cooperate when approached by CCCS.