Knowledge Highlights 14 January 2025
CCCS gives positive guidance in first case under streamlined process for business collaborations pursuing environmental sustainability objectives
The Competition and Consumer Commission of Singapore (“CCCS”) has given positive guidance in the first case considered under the streamlined process outlined in CCCS’s Guidance Note on Business Collaborations Pursuing Environmental Sustainability Objectives (“Guidance Note”) to assess collaborations pursuing environmental sustainability objectives. CCCS issued the Guidance Note on 1 March 2024 to provide clarity to businesses on how CCCS will assess collaborations pursuing environmental sustainability objectives, so that such collaborations may be pursued in a manner that does not harm competition. Under the streamlined process, CCCS will undertake a two-phase approach, with a Phase 1 review expected to be completed within 30 working days for simple cases, plus an additional Phase 2 review of 120 working days for complicated cases.
For more information on the Guidance Note, please read our article “CCCS publishes Guidance Note on Business Collaborations Pursuing Environmental Sustainability Objectives”.
In a media release issued on 3 January 2025, CCCS announced that it has given positive guidance that the joint establishment and operation of Beverage Container Return Scheme (BCRS) Ltd. (“BCRS Ltd.”) by Coca-Cola Singapore Beverages Pte. Ltd., F&N Foods Pte Ltd, and Pokka Pte. Ltd. (collectively, “Parties”) is unlikely to infringe section 34 (prohibits anti-competitive agreements between businesses) and section 47 (prohibits abuse of a dominant market position) of the Competition Act 2004 (“Competition Act”). CCCS’s positive guidance follows a Notification for Guidance (“NG”) by the Parties and BCRS Ltd. (collectively, “Applicants”) to CCCS on whether the joint establishment and operation of BCRS Ltd. by the Parties is likely to infringe section 34 or section 47 of the Competition Act.
BCRS Ltd. is a not-for-profit company licensed by the National Environment Agency (“NEA”) to design and operate the Beverage Container Return Scheme (“Scheme”) in Singapore, which is targeted to launch on 1 April 2026. Under the Scheme, pre-packaged beverages in plastic and metal containers ranging from 150 millilitres to three litres will have a refundable deposit of S$0.10.
The Applicants’ NG followed earlier competition advice that CCCS had provided to the NEA, on how NEA could mitigate potential competition concerns when developing the Scheme. The NG also allowed the Applicants to clarify and address any residual competition concerns regarding the joint establishment and operation of BCRS Ltd. In line with the expedited timeline under the Guidance Note, CCCS completed its assessment within 30 working days.
CCCS encourages businesses to familiarise themselves with the Guidance Note to gain greater clarity when planning collaborations with environmental sustainability objectives to ensure compliance with the Competition Act. Under the Guidance Note, there is no legal requirement for businesses to notify their collaborations to CCCS, but if a business is unsure as to whether a specific collaboration pursuing environmental sustainability objectives complies with the Competition Act, they may notify the collaboration to CCCS for guidance or decision.
Reference materials
The following reference materials are available on the CCCS website www.cccs.gov.sg:
