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SINGAPORE: The Competition Commission of Singapore has concluded that the impending fee increase by NETS is not an infringement of the Competition Act.
It will therefore not be taking any further action at this point in time.
The Commission made the statement after reviewing available information, following a complaint filed by the Consumers' Association of Singapore (CASE).
NETS had announced that it would be increasing its fees from July 1.
The Commission clarified that it is not generally within the purview of the Competition Act to review or regulate pricing decisions.
It said the Act is only relevant when a party acts in a manner that abuses its dominant position.
The Commission added that in this case, there are alternative payment methods such as credit, debit and EZ-Link cards that consumers can use.
Section 47 of the Competition Act prohibits firms with dominant market power from abusing it in ways that are anti-competitive and work against long-term economic efficiency.
CASE has expressed its disappointment over the Commission's decision not to take action on the the NETS fee increase.
It is concerned retailers may pass the increased NETS transaction fees onto consumers, despite NETS saying that retailers are not supposed to do so.
CASE has advised consumers to ask retailers about additional costs, check receipts and report retailers who pass on the increased NETS fee to consumers.
It also stressed that banks have the responsibility to support NETS but they could keep interchange fees low.
- CNA/ir/so
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