SINGAPORE SEEKS COMMENTS ON COMPETITION LAW AMENDMENTS

UNCLAS SINGAPORE 003428 SIPDIS STATE PASS DOJ FOR SCHEMTOB USTR FOR AUSTR BWEISEL AND JJENSEN COMMERCE FOR JBAKER SIPDIS E.O. 12958: N/A TAGS: ECON ETRD EINV SN SUBJECT: SINGAPORE SEEKS COMMENTS ON COMPETITION LAW AMENDMENTS ¶1. The Competition Commission of Singapore (CCS) is seeking comments on proposed amendments to Section 54 of the Competition Act and newly drafted guidelines for implementation. ¶2. Section 54 addresses mergers and acquisitions and includes amendments that: i) allow for mergers that have lessened or are expected to substantially lessen competition, but which could have other, offsetting benefits. ii) allow for voluntary notification of anticipated mergers. Currently, only completed mergers are covered by the Competition Act. iii) allow the CCS to accept, amend, substitute, enforce or release "commitments" (binding agreements) it makes with parties involved in specific mergers or acquisitions. Transactions can then proceed in accordance with the obligations undertaken by the parties involved to address identified concerns. iv) incorporate validity periods for CCS decisions, taking into account changing market conditions. ¶3. Section 54 and its accompanying guidelines are scheduled to come into effect on July 1, 2007. They mark the third and final implementation phase of the Competition Act, which Singapore enacted in 2004 as part of its obligations under our bilateral Free Trade Agreement. Phase I involved the establishment of the Competition Commission of Singapore in January 2005. Phase II covered the implementation of Section 34 (anti-competitive agreements) and Section 47 (abuse of market dominance) guidelines that came into effect in 2006. ¶4. The closing date for submission of comments is November 10, ¶2006. The consultation paper and accompanying documents are available at: Comments may be submitted as follows: Email: ccs_consultation@ccs.gov.sg Fax: 65-6224-6929 Mail: Director (Economics) Competition Commission of Singapore 5 Maxwell Road #13-01, Tower Block MND Complex Singapore 069110 HERBOLD