This website uses cookies to ensure you have the best experience. Learn more

Was Singapore Correct To Exclude Vertical Restraints From The Section 34 Prohibition?

2081 words - 9 pages

Was Singapore correct to exclude vertical restraints from the section 34 prohibition?

The Competition Act in Singapore is a relatively young piece of legislation. Substantive provisions prohibiting anti-competitive acts and conduct, in the form of sections 34 and 47, only came into effect as recent as 1st January 2006. The Competition Act was “largely modelled on the UK's Competition Act 1998 ” , which was in turn modelled after European competition law contained in the Treaty establishing the European Community . Several amendments have however been made to take into account Singapore’s “specific economic characteristics and requirements, in particular, the fact that we are ...view middle of the document...

Vertical agreements involving a dominant player remain covered by the prohibition against abuse of dominance.
The EU Block Exemption
Although, the European Union uses an identical definition for “vertical agreement” , it does not have a blanket exemption on vertical agreements. Instead the European Commission (“EC”) has adopted a block exemption on vertical agreement and concerted practices (“EU Block Exemption”), in the form of Regulation 330/2010. Amongst the various requirements that must be met to fall under the EU Block Exemption, two key requirements in particular are that the market share of both parties must not exceed 30 percent , and the agreement must not contain any hardcore restrictions, such as fixed or minimum resale prices .
This essay will first examine the benefits and detriments vertical agreements may have on competition. The reasons for and against adopting a blanket exclusion of vertical agreements from the section 34 prohibition will then be examined to show why such a blanket exemption should not be adopted in Singapore.
Vertical agreements: Possible benefits and detriments
Pro-competitive effects
Both the Competition Commission of Singapore (“CCS”) and the EC recognise that vertical restraints can have pro-competitive effects , “especially if there is effective competition at both the upstream and downstream levels.” Benefits include the promotion of efficiencies, non-price competition, investment and innovation, and the development of new markets.
The EC has identified several ways in which vertical restraints can achieve efficiencies or help to develop new markets. Amongst other benefits, vertical restraints can be used to solve the free-rider problem, when a retailer or distributor free rides on the investment of another. For example a distributor may invest in a particular brand to create a demand for it, or make investments to enter a new geographic market. Some form of protection may then be required for the distributor to recoup its investments. Secondly, vertical restraints help solve the hold-up problem, where suppliers or buyers will not commit to making client-specific investments, such as special equipment or training, until supply arrangements are fixed. Thirdly, vertical restraints can be used to achieve economies of scale in distribution, leading to lower retail prices. Fourthly, vertical restraints can be used to create brand image and increase the attractiveness of the product by imposing uniformity and quality standardisation. The Supreme Court of the United States has also recognised that reduction of intra-brand competition (ie, competition between retailers selling the same brand) caused by vertical restraints can promote inter-brand competition (ie, competition between manufacturers selling different brands of similar products) . The promotion of inter-brand competition is important as it is the “primary purpose” of competition law , and it accords with Singapore’s competition policy of...

Find Another Essay On Was Singapore correct to exclude vertical restraints from the section 34 prohibition?

Migration from the Nation-State of Singapore

573 words - 2 pages , this is most detrimental as the ‘brain drain’ is acutely felt in a nation that treats people as its most precious resource. While Singapore has managed to counter emigration rates with immigration from nearby countries (China, India & surrounding Southeast Asian countries), the effect of the compositional change of the population has arguably manifested especially in terms of local Singaporeans considering the benefits of staying on in a country

Study notes from Information Technology in the IT Environments section

3369 words - 13 pages user needs and then writes up a business proposal for the new system.Management ConsultingThis person works with management of the clients organisation to determine IT needs and writes business proposals to management.Help desk SupportRolesKey ResponsibilitiesHelp Desk Co-OrdinatorThis person accepts problem reports from users related to all aspects of IT. The Co-Ordinator either assists users with more complex problems or send the problem call to

This essay is step by step on how to do cpr the correct way this was writing for a description essay for a english class

706 words - 3 pages arrest occurs twice as frequently in men compared to women. CPR was invented in 1960. There has never been a case of HIV transmitted by mouth-to-mouth CPR. In sudden cardiac arrest the heart goes from a normal heartbeat to a quivering rhythm called ventricular fibrillation (VF). This happens in approximately 2/3rds of all cardiac arrests. VF is fatal unless an electric shock, called defibrillation, can be given. CPR does not stop VF but CPR

Annual Land-based Overseas Filipino Workers Remittances from Hongkong and Singapore for the years 1989 to 2010

1681 words - 7 pages Hongkong, the sample variance is 14,511,209,146.16 and its square root is 120,462.48. Based on the standard deviation, the distance of the observations from the average is 157,881.97 for Singapore and 120,462.48 for Hongkong. The high standard deviation implies wide dispersion of the annual remittances. Singapore had the highest remittances in 2010 which amounted to 544,389 while it had its lowest in 1991 which was 7,592. Hongkong had 382,401 as the

The Correct Role Models to Go to University

950 words - 4 pages Wes looked up to Tony as his role model. Tony was like the only man figure in his life plus Tony was his older brother. The other Wes’ life decisions that were influence by Tony are beside We getting into the drug game, but also Wes having kids at an early age and getting out of the drug game then returning back to it. In reality Wes probably did the things his brother did was because he wanted his brother, his role model to be proud of him and

Attracting Investors to Singapore with the EntrePass

712 words - 3 pages The EntrePass, which was introduced in October 2013, had the noble intention of enhancing Singapore’s entrepreneurial vibrancy. However, like all good businesses, it requires fine-tuning every now and then to keep it up to date with the modern world’s changes. For instance, the new social sites are slowly eclipsing the traditional media. EntrePass capitalize on this and reach out to the huge number of potential investors that flock its website

The Correct Solution to the Problem of Self-Identity

2174 words - 9 pages correct solution. For Locke consciousness is memories about one’s past experiences. In An Essay Concerning Human Understanding, Locke states, “consciousness always accompanies thinking, and it is that which makes everyone to be what he calls self, and thereby distinguishes himself from all other thinking things, in this alone consists personal identity, i.e. the sameness of a rational being: and as far as this consciousness can be extended

Singapore Ministry of Transport: From the then till now

1138 words - 5 pages Arts, then renamed the Ministry of Information, Communications and the Arts (MITA).On 1 July 2002, the Meterological Service department was transferred from MOT to the National Environment Agency (NEA), which was under the Ministry of Environment. It was renamed the Meterological Service Division.There are various boards under the MOT:* Civil Aviation Authority of Singapore (CAAS)* Land Transport Authority (LTA)* Maritime and Port Authority of

How to Correct my Particulars in the Voter List Online?

719 words - 3 pages answer is No. If you wish to correct your particulars that are entered in the electoral roll, you shall have to fill the Form No. 8. This election card form could be easily obtained online i.e on your state’s ERO Website or from the Election Commission of India website. Consequences of wrong particulars. The fact that your particulars are found to be wrong while observing voter list online must be taken care of immediately because your name and

The Correct Packaging Materials To Use When Shipping A Package

609 words - 2 pages The Correct Packaging Materials To Use When Shipping A Package When you are preparing to package items it is important to use the proper packaging materials. There are different materials for various items. If you are shipping a package through the mail it requires different supplies than packaging items to move yourself. Heavy items require extra attention as does fragile items. There are two basic types of packing materials, either

How to Choose the Correct Nursing School for You

751 words - 3 pages nursing program. Choose a School Within Driving Distance Consider the increasing gasoline and other traveling costs before immediately choosing an LPN program or RN program at just any old school. Likewise, refrain from choosing a school simply because it's within driving distance. Driving 100 miles every day to attend nursing school does not sound very practical, especially with a family or children that need a mother or father at home to meet

Similar Essays

Assessment Of The View That Prohibition Was Doomed A Failure From The Start

3236 words - 13 pages Assessment of the View that Prohibition was Doomed a Failure from the Start Prohibition: was the ban on the manufacturing, sale or transportation of alcohol during the period of prohibition, 1919-1933. Speakeasies: were bars in the cities which sold alcohol on demand illegally. A lot these needed a password to get in. Clubs or bars such as these were set up illegally during the prohibition. Bootlegger: was a person

Was Prohibition Successful In The 1920s?

608 words - 3 pages to develop rapidly and may trigger some chaos as well as corruption. By using patronage, the mafias also gained lots of authorities for dirty work and smuggling. The government itself also suffered from corruption and could not serve its people. Thus the prohibition was unsuccessful. Second, the prohibition did not effectively stop or even decrease any alcohol abuse. Instead, the demand of alcohol caused more crimes. In the 1920s, there were

How Successful Was The Prohibition And Was It Necessary?

1458 words - 6 pages alcohol taxes . Manufacturers benefit more from the prohibition because more people demanded alcohol. They could earn profits without paying alcohol taxes or income taxes because no one knew about the business deals. Thomas Robert Dewar stated that Prohibition was a big fallacy. The Legislature realized that alcohol was necessary to some extent—for medicinal, mechanical and manufacture purposes . They allowed some manufacturing of alcohol in states

Was Colonial Culture Uniquely American? Refers To A Section In The Book "Taking Sides" By Gary B. Nash

857 words - 3 pages After reading the section entitled 'Was Colonial Culture Uniquely American' in the book Taking Sides, I came to the conclusion that colonial culture was uniquely American. Professor Gary B. Nash states time and time again that the combination of the Europeans, Native Americans, and Africans created a unique triracial society. Although other reasons do comply with my choice, they all basically come back to this statement.First, Mr. Nash describes