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Supply of Lift Spare Parts For Maintenance of Lifts in HDB Estates: Voluntary Commitments by Suppliers Finalised

2018, Singapore, Abuse of Dominance

CCS has been investigating alleged refusals to supply lift spare parts for the maintenance of lifts in Housing Development Board ("HDB") estates. There are, typically, multiple brands of lifts installed in each HDB estate. Town councils can choose to either appoint the original lift installers of the respective brands to undertake the maintenance services, or engage third-party lift maintenance contractors to provide lift maintenance services for multiple brands of lifts within the estate. CCS understands that there could potentially be cost savings in engaging a third-party lift maintenance contractor for multiple brands as compared to having to procure lift maintenance services from each original lift installer.

Lift contractors that wish to bid for lift maintenance projects that include multiple lift brands would require brand-specific lift spare parts. 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.

To address CCS’s competition concerns, BNF Engineering (S) Pte Ltd (“BNF”) and C&W Services Operations Pte Ltd (“CWO”) had each separately proposed voluntary commitments to CCS in relation to the supply of lift spare parts to third-party lift maintenance contractors.

Read more here.