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Watchdog to probe practices in supply of HDB lift parts

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    QX179R's Avatar
    85,643 posts since Feb '08
    • Competition watchdog to probe industry practices in supply of HDB lift parts

      SINGAPORE: The Competition Commission of Singapore (CCS) has launched an investigation into “restrictive industry practices” in the supply of lift parts in HDB estates, the competition watchdog said on Thursday (Jul 14).

      The investigation was launched after CCS received a complaint alleging that several companies were refusing to supply lift spare parts to third-party contractors for the maintenance of lifts.

      Typically, multiple brands of lifts are installed in each HDB estate. Town councils can choose to either appoint the original lift installers for maintenance services, or appoint a third-party contractor to provide maintenance services for all the lifts within the estate.

      Contractors that wish to tender for lift maintenance projects would require brand-specific lift spare parts.

      “If the third-party lift maintenance contractors cannot obtain the lift spare parts for each lift brand, town councils would be reluctant to choose third-party lift maintenance contractors, which may be able to provide the lift maintenance services at lower cost and better service quality as compared to the original lift installer,” CCS said.

      Currently, the majority of the more than 20,000 lifts installed in HDB estates across Singapore are being maintained by the Original Equipment Manufacturers (OEMs), CCS said.

      “The inability of third-party lift maintenance contractors to source for original parts, for example lift motherboards, poses significant operational issues for them. CCS understands that other lift maintenance companies including the OEMs may also be involved in such potentially anti-competitive practices,” it said.

      Although a supplier is free to decide with whom it wants to do business, a refusal by a dominant or sole supplier to supply certain essential products or services could be illegal, the watchdog said.

      One supplier has voluntarily come forward to supply a brand of lift parts to third-party contractors, CCS said. On May 12, EM Services committed to supply BLT lift spare parts to third-party lift maintenance contractors. CCS said it considers the commitment by EM Services as fully addressing its competition concerns.

      “CCS will continue its other investigations to ensure access to essential lift spare parts for third-party lift maintenance contractors and to effectively compete for lift maintenance of these other brands of lifts,” the watchdog said.

      - CNA/cy
  • ^Acid^ aka s|aO^eH~'s Avatar
    31,272 posts since Oct '02
    • I didnt know about section 47 until today...

      seems like there is really such a thing...

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