By Lim Chong Kin and Scott Clements
We explore the developments in Singapore competition law through to 2008 and the story so far following the implementation of the country's merger regulations in July 2007. It was also a year of continuing changes in business attitudes towards competition law and their approach to compliance issues.
The ACCC has released its long awaited Merger Guidelines (2008 Guidelines). The role of these guidelines is to outline the general analytical framework the ACCC will apply when assessing whether a proposed merger is likely to substantially lessen competition and therefore be prohibited under s 50 of the Trade Practices Act 1974. The 2008 Guidelines replace the previous Merger Guidelines, originally published in 1999 (1999 Guidelines).
By: Yvonne Hsieh
(The article reflects only the authors' opinion and does not represent the opinion of Lee and Li.)
In a decision dated 10 September 2008, the Taiwan Fair Trade Commission (TFTC) ruled on a proposal by a leading instant noodle vendor to indirectly acquire, through a subsidiary, more than one third of the shares in another leading instant noodle vendor. Finding that the proposed takeover was likely to significantly restrict competition, and considering the insignificance of the overall economic benefit of the proposed takeover, the TFTC held that the overall economic benefit of the business combination would not outweigh the disbenefit of restraint of competition, and barred the takeover.
By: Vovo Iswanto
Collusive tendering is an anticompetitive practice which substantially eliminates competition and is therefore prohibited by law. In this article the author explains two categories of collusive tendering, vertical and horizontal collusion. According to case law (jurisprudence), agreements falling into these two categories may fall within the prohibition of anticompetitive practices stipulated in Law No.5/1999.
Almost 5 years after criminal sanctions for serious cartel behaviour were recommended by the Dawson Committee, the new Federal Government has this year released an exposure draft of legislation (Draft Bill) that would provide criminal sanctions for cartel conduct engaged in 'with the intention of dishonestly obtaining a benefit'. Clearly, good risk management and compliance strategies will be more important than ever.