Anticompetitive agreements are prohibited under section 34 of the Competition Act (“section 34 prohibition“). However, under recommendation by the Competition and Consumer Commission of Singapore, the Minister for Trade and Industry may order an exemption of certain types of agreements from the section 34 prohibition on the basis that a category of agreements fulfils the net economic benefit criteria, i.e. a block exemption.
Currently, the only block exemption in Singapore is the Competition (Block Exemption for Liner Shipping Agreements) Order (“BEO“) which exempts certain types of liner shipping agreements from the section 34 prohibition. First introduced in 2006, the BEO has been extended several times with various amendments lodged under it over time and was due to expire on 31 December 2021.
The Competition (Block Exemption for Liner Shipping Agreements) (Amendment) Order 2021 extends the BEO for another three years, from 1 January 2022 to 31 December 2024, and amends the scope of liner shipping agreements covered thereunder. The extended duration of the BEO took effect from 15 November 2021 and the other amendments will take effect from 1 January 2022.
This Update highlights the extension and other salient amendments to the BEO, such as the categories of liner shipping agreements covered and the cancellation of exemption.
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