Competition watchdog CCS will step in if consumer welfare is compromised: Low Yen Ling

The customer is king and market forces should be allowed to play out, but Singapore’s competition and consumer regulator will step in if consumer welfare is compromised, said Senior Minister of State for Trade and Industry Low Yen Ling.

She was responding to a parliamentary question on Jan 13 from Mr David Hoe (Jurong East-Bukit Batok GRC) on whether the Competition and Consumer Commission of Singapore (CCS) considers the diversity of offerings and consumer choice in heartland malls.

Mr Hoe raised the issue in the context of a single owner controlling two malls within the same catchment area. This follows the acquisition of The Clementi Mall by an entity linked to Mr Zhao Zhichao of The Elegant Group, which also owns the nearby Grantral Mall @ Clementi.

The parties have not formally notified the CCS for an assessment.

Ms Low noted that Singapore adopts a voluntary merger notification regime to balance between regulatory oversight and keeping compliance costs low.

“Merger parties are expected to self-assess whether the transaction may give rise to potential competition concerns. Merger parties may approach CCS for pre-notification discussions or seek guidance on whether the merger may be anti-competitive,” she said.

Ms Low said the tenant mix in heartland malls often reflects consumer demand driven by the needs and preferences of residents. It is also in the mall operator’s interest to provide differentiated products and services. Still, if the malls are within close proximity of each other, it will be “quite interesting” to have the same brand shops operating in both malls unless it is due to capacity issues, she said.

Ms Low noted that while market forces should be allowed to play out, it does not mean that CCS will be “hands off”. The regulator has detailed guidelines on the substantive assessment of mergers, while the Competition Act maintains a healthy competitive environment.

“CCS will assess the degree to which competition may be affected... If any transaction results in substantially less competition that compromises consumer welfare, CCS will step in. If CCS observes the behaviour of the organisations and picks up signals that they are coordinating the behaviour to raise prices, to reduce quality, output and innovation, CCS will step in.”

Ms Low said members of the public can provide feedback about potential competition issues to CCS directly.

Source: The Straits Times © SPH Media Limited. Permission required for reproduction.

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