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CCCS Issues Infringement Decision against the Exchange of Commercially Sensitive Information between Competing Hotels
The Competition and Consumer Commission of Singapore (“CCCS”) has today issued an Infringement Decision (“ID”) against the owners/operators of the following hotels:
Capri by Fraser Changi City Singapore (“Capri”):
a. Ascendas Frasers Pte. Ltd., owner of Capri (until 30 March 2015) (“AFPL”);
b. Frasers Hospitality Trustee Pte. Ltd., owner of Capri (from 31 March 2015) (“FH Trustee”); and
c. Frasers Hospitality Pte. Ltd., appointed agent for the management/operation of Capri (“FHPL”)
Village Hotel Changi and Village Hotel Katong (collectively referred to as the “Village Hotels”):
a. Far East Organization Centre Pte. Ltd., owner of Village Hotel Changi (“FEOC”);
b. Orchard Mall Pte. Ltd., owner of Village Hotel Katong (“OM”); and
c. Far East Hospitality Management (S) Pte. Ltd., appointed agent for the management/operation of the Village Hotels (“FEHMS”)
Crowne Plaza Changi Airport Hotel (“Crowne Plaza”):
a. OUE Airport Hotel Pte. Ltd., owner/master lessee of Crowne Plaza (“OUE Airport Hotel”); and
b. Inter-Continental Hotels (Singapore) Pte. Ltd., appointed agent for the management/operation of Crowne Plaza (“IHG Singapore”)
(each a “Party” and together the “Parties”)
for infringing section 34 of the Competition Act (Cap. 50B) (“the Act”) by exchanging commercially sensitive information in connection with the provision of hotel room accommodation in Singapore to corporate customers.
The financial penalties levied on the Parties are as follows:
Mr. Toh Han Li, Chief Executive, CCCS said:
"The exchange of non-public commercially sensitive information between competitors is harmful to competition and customers in the market as it reduces the competitive pressures faced by competitors in determining their commercial decisions, including the price they will offer to customers. This can result in customers having less competitive prices and options after such exchanges. If a business receives such information from its competitor, it should immediately and clearly distance itself from such conduct and report it to CCCS.”