Coach operators and association fined S$1.69m for price fixing
By S Ramesh, Channel NewsAsia | Posted: 03 November 2009 1303 hrs

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SINGAPORE: Sixteen coach operators and the Express Bus Agencies Association have been fined a total of S$1.69 million for fixing the price of coach tickets.

The Competition Commission of Singapore said this has been going on for one-way coach tickets between Singapore and destinations in Malaysia from 2006 to 2008.

The Express Bus Agencies Association, which has about 25 members, said some 300,000 travellers used their coaches for trips last year between Singapore and Malaysia.

The commission said the association and 16 coach operators imposed minimum selling prices first fixed at S$25 for one-way coach tickets to Kuala Lumpur when some of the association's members were then selling their tickets at S$20 or S$23.

The prices were revised in March 2006 and ranged between S$22 and S$39.

Besides setting minimum selling prices, the Express Bus Agencies Association and the 16 coach operators also went about increasing the price of tickets by implementing fuel and insurance charges.

This was done in 2005 and was reviewed in 2007 and 2008. The commission estimates that the coach operators pocketed nearly S$3.65 million through these fuel and insurance charges.

Teo Eng Cheong, chief executive, Competition Commission of Singapore, said: "The members had regular meetings and this topic of minimum selling price, and fuel and insurance charge will be discussed. They also have a rebate system to track and monitor the sales of these coupons and to make sure that members sell sufficient number of coupons.

"We also have evidence to show that when one company was selling its ticket price below the minimum selling price, another company complained at the meetings.

"We do not object to companies increasing their price because of fuel cost increases. What we object to is companies colluded and fixed the prices and this was done as a first instance.

"We would like to encourage (those) facing with price increases to consider ways to improve their productivity or innovate their products and services instead of getting together to fix prices - that is something we don't want to encourage"

The Express Bus Agencies Association argued that it was not aware of the Competition Act till the commission started investigating in June last year.

Sebastian Yap, Express Bus Agencies Association, said: "We learned that the law exists that we were not aware. Of course, we will not do this again. If we could have known this earlier, it would have been much better for all of us."

The association added that it has not been profiteering, but covering increases in fuel costs. The association and its members have two months to pay up their fines or file an appeal. - CNA/vm