High price ok provided...

Chin Yen Yen, Dep Director, Corporate Communications Competition Commission said, '...under the Competition Act in Singapore, a high price set by a dominant player does not in itself imply an abuse of dominance.' This is only true if certain conditions exist. She added that there must be 'competition among different suppliers in a free market environment. In many instances we actually have a near monopoly situation here and a free market environment is not present. Public transport quickly comes to one's mind. TV licence, news provider, privatised public services etc etc. The public needs to be protected from such monopolistic environment or in industries where cartel like practices are possible.

1 comment:

Matilah_Singapura said...

Absolutely true.

Markets are demand driven, and if they are free, it is The Consumer who is 'king'.

Look at the computer (PC) market, which is about as free as you can get (so far, so good).

Over the years prices have fallen. to compete vigourously, the dominant players have been the most competitive in offering more bang for the buck and slashing prices.

Monoplies only exist because they are protected by govt. through a variety of means -- usually expensive licensing or burdensome regulation, etc. These for 'barriers to entry' to would-be competitors.