Competition Commission Consults on Investigation, Enforcement and Filing Notifications for Guidance or Decision

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Leniency programme to encourage "whistle-blowing" to be put in place

1. Members of cartels ("whistleblower" members) having second thoughts about their involvement in price-fixing and other types of cartels, may help uncover such cartels under a leniency programme that the Competition Commission of Singapore (CCS) will implement in January next year. This programme forms part of the CCS investigation and enforcement strategy. The details of this programme are included in a set of four draft guidelines on the Competition Act that CCS issued today for public consultation. 

2. These draft guidelines cover investigation and enforcement of infringements, the leniency programme, and notifications of agreements or conduct for guidance or decision. 

3. The relevant provisions in the Act covered by these guidelines will come into force on 1 January 2006, together with the section 34 prohibition relating to anti-competitive agreements and the section 47 prohibition relating to abuse by a business of its dominant position. 

4. The guideline on the powers of investigation sets out the procedure for and powers of the CCS to investigate infringements. The offences relating to the exercise of those powers are also outlined. 

5. The guideline on enforcement sets out the powers of CCS to give directions on interim measures during an investigation, or to bring an infringement to an end and impose financial penalties on businesses that infringe the section 34 and/or section 47 prohibition. 

6. CCS will put in place a leniency programme to encourage "whistleblower" members to come forward with information and evidence regarding cartel activities.This will facilitate investigation of and enforcement against existing cartels, as well as deter the formation of new cartels. 

7. The guideline on filing notifications for guidance or decision deals with how a business may notify the CCS of its agreement or conduct, and seek guidance or a decision from the CCS on whether there is an infringement. 

Public Feedback 

8. This is the second set of guidelines issued by the CCS for public consultation. The first set of three draft guidelines on the section 34 prohibition, the section 47 prohibition, and market definition were issued earlier for public consultation. The CCS is evaluating the submissions made by the public. The remaining guidelines will be issued for public consultation in the next few months. The CCS aims to complete the process by November 2005. 

9. The consultation documents on the draft guidelines can be downloaded from the CCS website at www.ccs.gov.sg under the section "Guidelines" and the Government Online Consultation Portal at www.feedback.gov.sg. The closing date for submissions is on or before 12 noon 30 June 2005. 

10. The CCS, together with the Singapore Business Federation (SBF) will conduct outreach seminars on 14 and 17 June for business associations, chambers, companies and businesses. Interested parties can contact SBF at events@sbf.org.sg or call 6827 6877 to register.

11. Please refer to Annex A for background information.