Price fixing of coach bus services for travelling between Singapore and destinations in Malaysia from 2006 to 2008

Case Title

Price fixing of coach bus services for travelling between Singapore and destinations in Malaysia from 2006 to 2008

Decision Date

03 Nov 2009

Case Summary

The Competition Commission of Singapore (CCS) decided that 16 coach operators and their trade association, the Express Bus Agencies Association (EBAA), had engaged in price-fixing of coach tickets.

CCS’ investigations revealed that the coach operators, together with the EBAA, had agreed to fix the prices of coach tickets for travelling between Singapore and destinations in Malaysia from 2006 to 2008. Through meetings arranged regularly under the auspices of EBAA, the coach operators agreed to fix the coach prices in two ways:

• Minimum Selling Prices (MSP) of the coach tickets sold.  As a result, these coach operators adjusted ticket prices to either at or above the MSP, resulting in higher ticket prices.

• Fuel & Insurance Charges (FIC) imposed across the board to mark up ticket prices. The FIC was revised upwards on various occasions after it was implemented.

The financial penalties levied on the 17 infringing parties totalled $1.69 million (see Annex A for the breakdown of penalties for each party). In fixing the appropriate amount of financial penalty, CCS took into account a number of factors, including the nature and structure of the market, market shares of the parties involved in the infringement and the impact and effect of the infringement.

Further information on CCS’ investigation, analysis of the case and the basis for the calculation of the financial penalty imposed on the infringing parties are set out in the Infringement Decision (ID) and the document is available here.

Useful links:

Infringement Decision, Media Release  and Competition Appeal Board's Decision