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Ministry of Trade and Industry : 2/2009

Notice of Appeal by Five Stars Tours Pte Ltd, GR Travel Pte Ltd and Gunung Raya Travel Pte Ltd on CCS Infringement Decision Against Price Fixing in Bus Services from Singapore to Malaysia and Southern Thailand

Appeal Number:

 

 

2/2009

 

 

Appellants:

 

 

1.Five Stars Tours Pte Ltd

2.GR Travel Pte Ltd

3.Gunung Raya Travel Pte Ltd

 

Date Received:

 

 

Notice of Appeal received on 30 December 2009

 

 

Summary of CCS Decision that Appeal Relates:

 

 

 

1.On 3 November 2009, 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.

2.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.

 

3.CCS has directed the Appealing Parties to terminate the MSP agreement with immediate effect. Pursuant to section 69(2)(d) of the Competition Act, CCS has imposed a financial penalty of $450,207 on Five Stars Tours Pte Ltd, $52,432 on GR Travel Pte Ltd, and $76,668 on Gunung Raya Travel Pte Ltd.

The full text of the Infringement Decision may be found at the following URL:   http://www.ccs.gov.sg/NR/rdonlyres/9717BB75-C9A2-4390-8949-5FD1781DCBB6/25477/EBAAIDPublicVersion_03112009_final.pdf

 

 

Relief Sought by Appellant

 

 

1.Financial Penalty to be annulled or reduced.

2.Set aside CCS direction to cease MSP agreement.

3.No order as to costs and interests to the prejudice of the Appealing Parties.

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