The Qantas/Emirates Merger Decision: How the Competition Commission of Singapore Used the NEB Exclusion to Regulate the Air Passenger Market

Posted by Social Science Research Network

The Qantas/Emirates Merger Decision: How the Competition Commission of Singapore Used the NEB Exclusion to Regulate the Air Passenger Market – Knut Fournier (Leiden University – Leiden Law School ; Shanghai Jiaotong University, KoGuan Law School)

ABSTRACT: The Competition Commission of Singapore (CCS) did not properly assess the Net Economic Benefits (NEB) created by the cooperation agreement between Qantas and Emirates. In particular, the high market shares of the two companies should have excluded the NEB defense under the Competition Act, even more so as the remedies proposed by the parties are likely to increase their market share further. The CCS appears to have failed to follow the letter of the Competition Act and instead effectively regulated the airlines sector through the use of competition tolls, undermining the enforcement of competition rules and restricting competition in the airlines sector. The more recent Decision on the Qantas/Jetstar cooperation shows an improvement in the assessment of economic benefits. The CCS must continue to improve its competitive assessment and must restrict the use of the NEB defense, or it will hurt competition and consumers in Singapore.