S’pore bus operators fined S$1.69m for price-fixing tickets to Malaysia

2009/11/03

SINGAPORE, Tues: Sixteen coach operators in Singapore and their trade association, Express Bus Agencies Association (EBAA), were fined a total of S$1.69 million for price-fixing their coach tickets to destinations in Malaysia.

The Competition Commission of Singapore (CCS) said today its investigation revealed the coach operators and the association had engaged in price-fixing of the coach tickets from 2006 to 2008.

In a statement, CCS said through regular meetings under the auspices of EBAA, the coach operators either fixed the coach prices to either at or above the minimum selling prices, or imposed fuel and insurance charges across the board to mark up ticket prices.

During the three-year period, CCS said it was estimated that the coach operators pocketed over S$3.65 million from the sale of fuel and insurance charges.

CCS’s investigations showed there was an agreement reached on June 1, 2005 by the EBAA to fix coach ticket prices to various destinations in Malaysia.

This agreement continued after Jan 1, 2006 when the Competition Act came into effect in Singapore.

CCS said it was found out that the introduction of the minimum selling price was premised on an intention to prevent any price war and minimise any slashing of coach ticket prices among competitors.

Before introduction of the MSP, EBAA members were selling coach tickets at various prices, in particular, lower prices.

For example, the minimum selling price was first fixed at S$25 for one-way coach tickets to Kuala Lumpur, but most of the EBAA members were then selling their tickets at S$20 or S$23.

CCS Chief Executive Teo Eng Cheong said investigations showed 16 companies and the association colluded to fix prices.

Instead of stopping the collusion, the association facilitated the price-fixing through its regular meetings and a rebate system to encourage the sale of fuel and insurance charge coupons, he added. –- BERNAMA