SINGAPORE – Four warehouse operators at Keppel Distripark have been issued a proposed infringement decision for price-fixing by the Competition and Consumer Commission of Singapore (CCCS).
Singapore’s competition watchdog said its investigations found that the operators colluded to implement an identically named and priced surcharge for warehousing services, in breach of the Competition Act, the CCCS said on Wednesday (March 16).
The four companies are CNL Logistic Solutions, Gilmon Transportation & Warehousing, Penanshin (PSA KD) and Mac-Nels (KD) Terminal.
The CCCS started an investigation in August 2018 following a complaint about possible price fixing at Keppel Distripark, a cargo distribution complex located at Kampong Bahru Road.
It found that between June 15 and 16, 2017, the operators had discussed their respective plans to implement an identically named and priced “FTZ Surcharge” for the warehousing of import cargo.
The companies applied this pricing in their operations from June 2017 to November 2019.
They colluded to avoid the risks of competitive pricing, the commission said.
The CCCS said it considers the price fixing conduct to be “by its very nature, harmful to competition”.
It added: “Businesses should independently determine their prices or pricing strategies, including whether to impose any surcharge and the quantum of such surcharge.”
The four companies have six weeks to make a formal response and provide any other information for the CCCS’ consideration before it makes its decision.
This includes operators that choose to provide information about the cartel’s activities in exchange for immunity or a reduction in financial penalties under CCCS’ leniency programme.
