Coach bosses in Singapore guilty of price fixing
The Competition Commission of Singapore (CCS) has found 16 coach providers operating between Singapore and Malaysia to be guilty of price fixing and has issued them with a fine which amounts to $1.69 million. After a detailed investigation by the CCS which, was set up to promote fair and healthy competition between businesses, they uncovered an agreement between coach company bosses which set a minimum price on tickets and also added an extra charge on all fares for insurance and fuel.
The price fixing was found to have taken place between 2006 and June of last year. Each coach company’s fine has been modified to reflect the size of their business and also the amount of money they gained from the swindle. Some are facing a fine for $10,000 others are having to pay as much as $518,167.
The CCS estimate that the coach operators have gained an extra $3.65 million over the period in question from the surcharges they added on to their ticket prices. The agreement to fix the coach fares at a minimum price is said to have been introduced so as to minimise the availability of cut price tickets and also to prevent a price war between competitors.
The collective $1.69 million fine is the largest ever imposed by the CCS to date.