Competition Act 2004 - Singapore Statutes Online

THIRD SCHEDULE

Sections 35, 48, 69(2) and 92 and paragraph 2 of Fourth Schedule

Exclusions from section 34 prohibition and section 47 prohibition

Services of general economic interest, etc.

1. Neither the section 34 prohibition nor the section 47 prohibition applies to any undertaking entrusted with the operation of services of general economic interest or having the character of a revenue‑producing monopoly insofar as the prohibition would obstruct the performance, in law or in fact, of the particular tasks assigned to that undertaking.

Compliance with legal requirements

2.—(1) The section 34 prohibition does not apply to an agreement to the extent to which it is made in order to comply with a legal requirement.

(2) The section 47 prohibition does not apply to conduct to the extent to which it is engaged in order to comply with a legal requirement.

(3) In this paragraph, “legal requirement” means any requirement imposed by or under any written law.

Avoidance of conflict with international obligations

3.—(1) If the Minister is satisfied that, in order to avoid a conflict between the provisions of Part 3 and an international obligation of Singapore, it would be appropriate for the section 34 prohibition not to apply to —

(a)	a particular agreement; or
(b)	any agreement of a particular description,

the Minister may by order exclude the agreement, or agreements of that description, from the section 34 prohibition.

(2) An order under sub-paragraph (1) may make provision for the exclusion of the agreement or agreements to which the order applies, or of such of them as may be specified, only in specified circumstances.

(3) An order under sub-paragraph (1) may also provide that the section 34 prohibition is to be deemed never to have applied in relation to the agreement or agreements, or in relation to such of them as may be specified.

(4) If the Minister is satisfied that, in order to avoid a conflict between the provisions of Part 3 and an international obligation of Singapore, it would be appropriate for the section 47 prohibition not to apply in particular circumstances, the Minister may by order provide for it not to apply in such circumstances as may be specified.

(5) An order under sub-paragraph (4) may provide that the section 47 prohibition is to be deemed never to have applied in relation to specified conduct.

(6) An international arrangement relating to civil aviation and designated by an order made by the Minister is to be treated as an international obligation for the purposes of this paragraph.

(7) In this paragraph, “specified” means specified in the order.

Public policy

4.—(1) If the Minister is satisfied that there are exceptional and compelling reasons of public policy why the section 34 prohibition ought not to apply to —

(a)	a particular agreement; or
(b)	any agreement of a particular description,

the Minister may by order exclude the agreement, or agreements of that description, from the section 34 prohibition.

(4) If the Minister is satisfied that there are exceptional and compelling reasons of public policy why the section 47 prohibition ought not to apply in particular circumstances, the Minister may by order provide for it not to apply in such circumstances as may be specified.

(5) An order under sub-paragraph (4) may provide that the section 47 prohibition is to be deemed never to have applied in relation to specified conduct.

(6) In this paragraph, “specified” means specified in the order.

Goods and services regulated by other competition law

5. The section 34 prohibition and the section 47 prohibition do not apply to any agreement or conduct which relates to any goods or services to the extent to which any other written law, or code of practice issued under any written law, relating to competition gives another regulatory authority jurisdiction in the matter.

Specified activities

6.—(1) The section 34 prohibition and the section 47 prohibition do not apply to any agreement or conduct which relates to any specified activity.

(2) In this paragraph, “specified activity” means —

(a)	the supply of ordinary letter and postcard services by a person licensed and regulated under the Postal Services Act 1999;
(b)	the supply of piped potable water;
(c)	the supply of wastewater management services, including the collection, treatment and disposal of wastewater;
(d)	the supply of bus services by a licensed bus operator under the Bus Services Industry Act 2015;
(e)	the supply of rail services by any person licensed and regulated under the Rapid Transit Systems Act 1995; and
(f)	cargo terminal operations carried out by a person licensed and regulated under the Maritime and Port Authority of Singapore Act 1996.

Clearing houses

7. The section 34 prohibition and the section 47 prohibition do not apply to any agreement or conduct which relates to —

(a)	the clearing and exchanging of articles undertaken by the Automated Clearing House established under the Banking (Clearing House) Regulations; or
(b)	any activity of the Singapore Clearing Houses Association in relation to its activities regarding the Automated Clearing House.

Vertical agreements

8.—(1) The section 34 prohibition does not apply to any vertical agreement, other than such vertical agreement as the Minister may by order specify.

(2) In this paragraph, “vertical agreement” means any agreement entered into between 2 or more undertakings each of which operates, for the purposes of the agreement, at a different level of the production or distribution chain, and relating to the conditions under which the parties may purchase, sell or resell certain goods or services and includes provisions contained in such agreements which relate to the assignment to the buyer or use by the buyer of intellectual property rights, provided that those provisions do not constitute the primary object of the agreement and are directly related to the use, sale or resale of goods or services by the buyer or its customers.

Agreements with net economic benefit

9. The section 34 prohibition does not apply to any agreement which contributes to —

(a)	improving production or distribution; or
(b)	promoting technical or economic progress,

but which does not —

(c)	impose on the undertakings concerned restrictions which are not indispensable to the attainment of those objectives; or
(d)	afford the undertakings concerned the possibility of eliminating competition in respect of a substantial part of the goods or services in question.

Provisions directly related and necessary to implementation of mergers

10. The section 34 prohibition and the section 47 prohibition do not apply to any agreement or conduct that is directly related and necessary to the implementation of a merger.

Mergers

11.—(1) The section 34 prohibition does not apply to any agreement (either on its own or when taken together with another agreement) to the extent that it results, or if carried out would result, in a merger.

(2) The section 47 prohibition does not apply to any conduct (either on its own or when taken together with other conduct) to the extent that it results in a merger.

[23/2007; 30/2015]

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