CCCS issues Proposed Infringement Decision for Bid-rigging Conduct in Procurement of Vulnerability Management Software Licences and Services

CCCS issues Proposed Infringement Decision for Bid-rigging Conduct in Procurement of Vulnerability Management Software Licences and Services

2 August 2024

(View media release in PDF)

1. The Competition and Consumer Commission of Singapore ("CCCS") has issued a Proposed Infringement Decision ("PID")^[1]against Rei Securite Pte. Ltd. ("Rei") and Soh Chee Keong ("Soh") (collectively, the "Parties") on 2 August 2024 for infringing section 34 of the Competition Act 2004^[2]. The companies engaged in bid-rigging conduct relating to three invitations to quote ("ITQ") called by Ngee Ann Polytechnic ("NP") between January 2021 and November 2022 for the procurement of licences for vulnerability management software and related support services. The value of the affected ITQs were between $63,000 and $65,000. CCCS was alerted to the conduct in January 2023.

CCCS's Investigation

2. Investigations revealed that Soh had entered into agreements and/or concerted practices with Rei. He procured the submission of cover bids by two newly incorporated companies, QBTT Pte Ltd ("QBTT") and Contabilita Pte Ltd^[3]("Contabilita"), for each of the affected ITQs in which Rei had participated. As a result of QBTT's and Contabilita's cover bids, Rei won each of the affected ITQs. These were the only three companies involved in the three affected ITQs. Soh subsequently received payment from Rei of up to $34,000 for providing IT support services to NP on behalf of Rei in respect of the affected ITQs.

3. CCCS found that the cover bids facilitated by Soh, as part of the anti-competitive agreements and/or concerted practices, undermined the competitive process intended for the affected ITQs. This gave NP the false impression that there was genuine competition from three independent bids, when in reality the bids were not independently determined and were designed to enhance Rei's chances of winning the ITQ. This prevented NP from obtaining bids that could provide the best value from the ITQ process, thereby undermining the intended competitive process.

4. The Parties now have the opportunity to provide their individual responses regarding the proposed infringements against them. After CCCS carefully considers any representations received, together with the evidence obtained during the investigation, CCCS will then make its final decision.

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About the Competition and Consumer Commission of Singapore (CCCS)

The Competition and Consumer Commission of Singapore ("CCCS") is a statutory board of the Ministry of Trade and Industry. CCCS administers and enforces the Competition Act 2004 which empowers CCCS to investigate and adjudicate anti-competitive activities, issue directions to stop and/or prevent anti-competitive activities and impose financial penalties. CCCS is also the administering agency of the Consumer Protection (Fair Trading) Act 2003 which protects consumers against unfair trade practices in Singapore. Our mission is to make markets work well to create opportunities and choices for businesses and consumers in Singapore.

For more information, please visit www.cccs.gov.sg.

Appendix - CCCS's Leniency Programme

CCCS's Leniency Programme affords lenient treatment to businesses that are part of a cartel agreement or concerted practice (or trade associations that participate in or facilitate cartels), when they come forward to CCCS with information on their cartel activities.

Due to the secret nature of cartels, businesses participating or which have participated in them are given an incentive to come forward and inform CCCS of the cartel's activities. The policy of granting lenient treatment to these businesses which co-operate with CCCS outweighs the policy objectives of imposing financial penalties on such cartel participants.

Where eligible for lenient treatment, businesses can be granted total immunity or be granted a reduction of up to either 100% or 50% in the level of financial penalties, depending on whether CCCS has already begun an investigation and the timing of the leniency application. For more information, please refer to the CCCS Guidelines on Lenient Treatment for Undertakings Coming Forward with Information on Cartel Activity 2016 which can be found on CCCS's website here.

^[1]The PID is a legal notice that outlines the facts used by CCCS to make its assessment and the reasons for reaching the proposed decision. It is issued to the Parties confidentially to assist them to make representations and provide any other information in support of their representations for CCCS's consideration.

^[2]Section 34 of the Competition Act 2004 prohibits any agreements between undertakings, decisions by associations of undertakings or concerted practices which have as their object or effect the prevention, restriction or distortion of competition within Singapore. An undertaking means any person, being an individual, a body corporate, an unincorporated body of persons or any other entity, capable of carrying on commercial or economic activities relating to goods or services.

^[3]Soh was the sole director and shareholder of QBTT and is not related to Rei or Contabilita. Both QBTT and Contabilita wereincorporated around the time of the first affected ITQ and struck off the Register of Companies with effect from 4 September 2023, following CCCS's intervention into Soh's conduct.

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