4. Consequences of infringing the Competition Act

Agreement Made Void

Any provision of an agreement entered into before 1 January 2006, shall be void and unenforceable to the extent that it infringes the section 34 prohibition on or after 1 January 2006.

Any provision of an agreement entered into on or after 1 January 2006 shall be void and unenforceable to the extent that it infringes the section 34 prohibition.

CCCS issuing Directions

CCCS may issue directions to bring any infringement of the section 34, 47 or 54 prohibitions to an end and, where necessary, require that person to take action to remedy, mitigate or eliminate any adverse effects of such infringements and and to prevent the recurrence of such infringements.

Financial Penalty Imposed

A financial penalty not exceeding 10% of the turnover of the business of an undertaking in Singapore for each year of infringement may be imposed for a maximum periods of 3 years, where there is an intentional or negligent infringement of the section 34, 47 or 54 prohibitions.

Endorse Rights of Private Action

A party who has suffered any loss or damage directly as a result of an infringement of the section 34 ,47, 54 prohibitions has a right of action in civil proceedings against the relevant undertaking.

This right of private action can only be exercised after the CCCS has determined that an undertaking has infringed the section 34, 47 or 54 prohibitions and only after the appeal process has been exhausted.