Five electronics parts manufacturers are fined by the Competition Commission of Singapore (CCS) in what is believed to be the biggest anti-competition penalty in the city.
The five electronic firms -- ELNA Electronics, Nichicon, Panasonic, Rubycon, and Singapore Chemi-con (SCC)-- were fined a total of US$14.7 million for price-fixing of Aluminium Electrolytic Capacitors (AEC). These capacitors are used in electrical devices such as computers and a variety of domestic appliances.
Panasonic came forward and reported the cartel activity and therefore received total immunity from the financial penalties under the CCS's leniency program. SCC received the highest penalty of S$6.994 million. Nichicon was fined $6.987 billion, a reduced amount after it applied for leniency. Rubycon and ELNA were given a penalty of $4.718 million and $853,227, respectively.
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According to a statement by the CCS, the five firms held regular meetings in Singapore where they "exchanged confidential and commercially sensitive business information such as customer quotations, sales volumes, production capacities, business plans and pricing strategies".
More so, the five firms were found out to have discussed and agreed on sale prices and agreed to collectively refuse requests for price discounts.
CCS found out that this cartel activity started in the early 1997 and that senior-level employees of the five firms have held meetings consistently, almost on a monthly basis until 2013.
"The long-running cartel sheltered the Parties' profitability and market shares from competition, to the detriment of their customers. Without the agreements, the Parties would have been under greater competitive pressure," CCS said.
The commission explained that without the cartel activity, the five firms would have had to draw customers with better prices and quality of products.
CCS Chief Executive said cartels amongst suppliers cause serious harm to competition in the market, leaving businesses and end-consumers in a poorer bargaining position and facing less competitive prices.
"This is CCS's third case involving a global cartel and Singapore being such an open market, can be impacted by such cross-border cartels. CCS will continue to take strong enforcement action to ensure that cartels do not negatively impact Singapore markets and its competitiveness," he said in a statement sent to the press.
