SINGAPORE Trends and Developments Contributed by: Lim Chong Kin and Corinne Chew, Drew & Napier LLC
sion was interested in gaining a more in-depth understanding of the business models of such e-commerce platforms and the competitive dynamics within which they operate. With the proliferation of such e-commerce platforms, the market study sought to identify potential com - petition and consumer issues which may arise. The market study recommends ways to ensure that the Commission’s framework and toolkits are future-ready and appropriately contextual - ised to address potential issues that may arise. Pursuant to the market study, the Commission recommended that undertakings should be careful when utilising artificial intelligence (AI) or algorithms, to ensure that such use does not support or facilitate any pre-existing or intended anti-competitive agreement or concerted prac - tice. With the further development of AI, the Commission will continue to closely monitor the area, and issue further guidance where appro - priate. As e-commerce platforms become increasingly relevant in today’s day and age, companies seek - ing to do business via such platforms should be careful to ensure that they do not infringe the Competition Act, and to implement safeguards to ensure that they would not be found to have infringed the Competition Act unknowingly. Protecting and empowering consumers in the digital transition On 8 October 2024, the Commission’s Assistant Chief Executive represented Singapore at the inaugural Organisation for Economic Co-opera - tion and Development (OECD) Consumer Policy Ministerial Meeting and made an intervention for ASEAN on the topic “Protecting and Empower- ing Consumers in the Digital Transition” .
In 2023, the Commission established the Data and Digital (D2) Division, designed to improve the efficiency and effectiveness of the Commis - sion’s enforcement and advocacy functions. Officers in this division are trained in skills such as machine learning and data analytics. The D2 Division utilises data analytics to supplement decision-making processes, provides exper - tise and technical knowledge and represents the Commission in international engagements on technological developments in competition With an increase in the use of AI systems and algorithms on digital platforms, competition concerns arise both from the use and provi - sion of AI. For instance, the Commission noted that where AI is used to make pricing decisions and in price-monitoring systems on digital platforms, this increases the risk of collusion between undertakings by allowing them to col - lect and analyse data in relation to their competi - tors. Industry-wide use of a single AI system to determine prices may result in co-ordination of pricing strategies. Further, the rapidly growing AI industry gives rise to concerns such as market consolidation and potential restrictions on key inputs such as data. enforcement. Digital tools In response to the evolving theories of harm sur - rounding AI and competition in the digital land - scape, the Commission has begun to leverage AI tools in cartel activity detection and enforce - ment, in line with the Commission’s objective to increase efficiency and productivity of its enforcement activities. To streamline investigative processes, the Com - mission has developed “Complaint Analytics” tool that automates the analysis of complaints received on a day-to-day basis. The Commis -
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