Competition watchdog seeks public feedback on commitment by lift parts suppliers

Competition watchdog seeks public feedback on commitment by lift parts suppliers

SINGAPORE: The Competition Commission of Singapore (CCS) is asking for public feedback on proposed commitments made by two lift parts suppliers - BNF Engineering (BNF) and C&W Services Operations (CWO), the competition watchdog said on Wednesday (Nov 15).

CCS has been investigating alleged refusals by companies to supply lift spare parts for the maintenance of lifts in HDB estates.

Typically, multiple brands of lifts are installed in each Housing Board estate. Town councils can choose to either appoint the original lift installers for maintenance services, or appoint a third-party contractor for all the lifts within the estate.

"If a lift company or distributor does not provide proprietary but essential lift spare parts to third-party lift maintenance contractors, other lift maintenance contractors may be prevented from effectively competing for contracts to maintain and service lifts of that particular brand in Singapore," CCS said.

To address competition concerns, BNF and CWO have each separately proposed voluntary commitments to CCS.

CCS said they will undertake to sell lift spare parts of the relevant brands to a purchaser subject to the following terms and conditions: 

  • The terms of supply on a fair, reasonable and non-discriminatory basis;
  • Ensuring that the purchaser is adequately qualified to service the said lifts;
  • Clarifying liability in the event of any mishaps, injuries or loss that arise;
  • Ensuring that the lift spare parts purchased are not modified or used for other lift brands; and
  • Seeking consent from the owner of the relevant lift to be repaired.

CCS will decide whether to accept or reject each of the proposed commitments following the market consultation, the competition watchdog added.

Views can be be submitted from Nov 15 to 28.

Source: CNA/ms