Competition Commission Consults on Transitional Arrangement and Appropriate Amount of Penalty

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CCS allows business community more time to comply with new Act

1. Members of the business community who are reviewing their agreements to bring them into compliance with the Competition Act 2004 (Act) by the end of the year, will have more time to renegotiate and amend their agreements under the transitional arrangements that the Competition Commission of Singapore (CCS) will implement. The details of the transitional arrangements are included in a set of two draft guidelines that CCS issued today for public consultation.
   

2. The section 34 prohibition relating to anti-competitive agreements and the section 47 prohibition relating to abuse by a business of its dominant position will come into force on 1 January 2006.
   

3. The guideline on transitional arrangements outlines how parties to agreements made on or before 31 July 2005 will have additional time to review these agreements and bring them into compliance with the Act. 
   

4. The guideline on the appropriate amount of penalty sets out the basis on which the CCS will calculate financial penalties for infringements of the sections 34 and/or 47 prohibitions. 

Public Feedback 

5. This is the third 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 finalised and issued on 29 July 2005. The second set of four draft guidelines on how the CCS will investigate and enforce infringements of the sections 34 and/or 47 prohibitions, CCS' leniency programme for 'whistleblower' cartel members and the procedure for notifying agreements or conduct for guidance or decision were issued on 26 May 2005 for public consultation. The remaining guidelines will be issued for public consultation in the next few months. The CCS aims to complete the process by November 2005. 
   

6. 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 noon on 16 September 2005.
   

7. The CCS, together with the Singapore Business Federation (SBF) will conduct outreach seminars on 30 August and 1 September 2005 for business associations, chambers, companies and businesses. Interested parties can contact SBF at events@sbf.org.sg or call 6827 6877 to register. 
   

8. Please refer to Annex A for background information.

(The draft guidelines and public submissions received are available here)