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June 17, 2009
Price-fixing probe on buses
Competition watchdog calls for their defence against claims of fixing bus fares to Malaysia
By April Chong
SIXTEEN tour coach agencies, including many major players, and a bus association are under probe for allegedly fixing the prices of express bus tickets to Malaysia between 2006 and last year.

The coach companies and the Express Bus Agencies Association were on Tuesday given six weeks by the Competition Commission of Singapore to submit their defence.

The tour agencies include names like Grassland Express & Tours, Nam Ho Travel Service and Five Star Tours.

Those who were contacted on Tuesday, however, either denied fixing prices or said they had not seen the notice sent by the commission. A number of agencies did not return calls or were uncontactable.

The commission said that because an investigation was on, it would not disclose specifics or say what triggered the probe.

But its spokesman said price-fixing was a 'serious infringement' of the Competition Act, and that businesses which collude to fix prices 'are in fact agreeing to stop competing' for financial gain.

The 16 companies and the association have been issued a Proposed Infringement Decision, a written notice laying out the facts.

A preliminary check by The Straits Times on Tuesday turned up a range of prices for coach rides to Malaysia. The coach fares varied depending on dates of travel and the seating capacity of the coaches offered by the agencies.

This is the second time that the commission has singled out a particular group of businesses by issuing them Proposed Infringement Decision notices.

The penalty for companies or organisations found guilty of anti-competitive practices can be a fine of up to 10 per cent of their annual turnover here for each year of infringement, for up to three years.

Read the full report in Wednesday's edition of the Straits Times

aprilc@sph.com.sg

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