CCS Issues Proposed Infringement Decision Against Ferry Operators

(View Media Release in PDF)

1. The Competition Commission of Singapore (CCS) has today issued a Proposed Infringement Decision (PID) against two ferry operators for contravening Section 34 of the Competition Act (Cap. 50B), which prohibits, amongst other things, concerted practices which have as their object the prevention, restriction or distortion of competition.

2. CCS investigated two ferry operators, Batam Fast Ferry Pte Ltd and Penguin Ferry Services Pte Ltd¹, and found that they have engaged in the exchange and provision of sensitive and confidential price information in relation to ferry tickets sold to corporate clients and travel agents, for the route between Singapore (Harbourfront) and Sekupang, Batam; and the route between Singapore (Harbourfront) and Batam Centre. This conduct is a breach of the Competition Act. Ferry operators should determine their ferry ticket pricing independently without discussion or agreement with each other.

3. The PID is a written notice setting out the basis for CCS’ decision. It is issued to the parties concerned, to give them an opportunity to submit their arguments to CCS, and submit any other information for consideration, before CCS finalises its decision on whether there has been an infringement.

4. Both parties have until 23April 2012 to make such representations.

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¹Penguin Ferry Services Pte Ltd was a wholly owned subsidiary of Penguin International Limited up until 1 July 2011, when it was fully acquired by SIF Group Pte. Ltd and ceased its passenger ferry services operations. Sindo Ferry (Pte. Ltd) (formerly known as Penguin Ferry Services Pte Ltd) now operates the passenger ferry services.

For media clarifications, please contact:
Cynthia Chin
Senior Assistant Director
Strategic Planning
Competition Commission of Singapore
Email: cynthia_chin@ccs.gov.sg
DID: 6325 8216

Notes to Editor

About the Competition Commission of Singapore

The CCS is an independent statutory body established under the Competition Act (Cap 50B) on 1 January 2005 to administer and enforce the Act. It is charged with the mission to champion competition for growth and choice. This will help realize the vision of a vibrant Singapore economy with competitive markets and innovative businesses.

For more information on CCS, visit www.ccs.gov.sg.

About the Competition Act

The Competition Act was passed in Parliament on 19 October 2004, and subsequently implemented in phases. There are 3 key anti-competitive practices prohibited under the Competition Act:

• Anti-competitive agreements or concerted practices (Section 34)

• Abuse of dominant position (Section 47)

• Mergers that substantially lesion competition (Section 54)

On 1 January 2006, the prohibitions on anti-competitive agreements (Section 34) and abuse of a dominant position (Section 47) came into force.  The prohibition on mergers that substantially lessens competition (Section 54) became effective on 1 July 2007.