Competition watchdog seeks public feedback on supply of HDB lift spare parts

SINGAPORE'S competition watchdog, which has been investigating alleged refusals to supply lift spare parts for the maintenance of lifts in HDB estates, is seeking public feedback on proposals by two lift companies.

The Competition and Consumer Commission of Singapore (CCCS) said on Friday that it is conducting a public consultation on proposals by lift companies Chevalier and Fujitec Singapore to address the issue of the supply of lift spare parts.

In 2016, the commission said that it was investigating alleged claims that some lift manufacturers had refused to supply vital spare parts, such as motherboards, to third-party contractors for the maintenance of lifts in Housing Board (HDB) estates.

Each estate usually has multiple brands of lifts installed. Town councils can appoint the original lift installers for maintenance services, or appoint a third-party contractor.

A lift manufacturer has an advantage when tendering for maintenance contracts, as it has the parts for its own brand of lifts. If a lift company does not provide essential parts to third-party contractors, they may be prevented from effectively competing for contracts to maintain and service lifts of the particular brand in Singapore.

The commitments will address issues such as Chevalier and Fujitec Singapore selling parts to third-party lift contractors on a "fair, reasonable and non-discriminatory basis" and ensuring that the purchaser is qualified to service the lifts.

They also include clarifying liability in the event of mishaps, injuries or loss, and ensuring spare parts purchased are not modified.

The feedback is meant to help assess whether the commitments will address competition concerns in relation to the supply of relevant lift spare parts, after which CCCS will decide whether to accept the commitments.

The public consultation will close on Jan 24. More details can be found on the CCCS website.

Last March, the competition watchdog accepted voluntary commitments by two lift part suppliers, BNF Engineering and C&W Services Operations, after a public consultation.

The commitments were amended and finalised following feedback before being accepted.

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