CCS Responds to Fee Increase by NETS

We refer to the recent media reports on the increase in fees by NETS from 1 July 2007 and CASE’s complaint on the matter to the Competition Commission of Singapore (CCS).

The CCS would like to clarify that it is generally not within the Competition Act’s purview to review or regulate pricing decisions. The Competition Act is only relevant when a party acts in a manner that abuses its dominant position.

The CCS has assessed the fee increase by NETS. Based on the information available, CCS’ view is that the increase in fees by NETS does not amount to an infringement of Section 47 of the Competition Act. In particular, alternative payment methods, such as credit, debit and EZ-Link cards, are available to consumers.

The CCS will hence not be taking any further action with regard to CASE’s complaint at this point in time.

Note: Section 47 of the Act prohibits firms with dominant market power (whether in Singapore or elsewhere) from abusing such power in ways that are anti-competitive and work against long-term economic efficiency. One example is the use of predatory pricing to prevent a new, more efficient competitor from competing on the merits of its goods and services.