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Singapore competition watchdog seeks feedback on new merger, settlement guidelines

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  Published in Sports and Competition on Monday, October 27th 2025 at 5:32 GMT by reuters.com
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Singapore’s Competition Authority Sets Out New Merger Settlement Guidelines – A Call for Public Feedback

On 27 October 2025, the Competition and Consumer Commission of Singapore (CCCS) announced a major step forward in its merger oversight regime. The agency has released draft guidelines for merger settlements and opened a public consultation period that will run until 3 November. The move is aimed at clarifying the regulator’s expectations, speeding up the settlement process, and enhancing transparency for both businesses and the public.

Why a New Framework Is Needed

Singapore’s competition law, embodied in the Competition Act, is designed to prevent anti‑competitive practices and promote consumer welfare. Over the past decade, the CCCS has handled a growing number of merger cases—especially as the island nation’s market economy continues to attract cross‑border investment. In many of these cases, parties have opted for settlement agreements before the regulator completes a full merger review. While settlements can save time and reduce uncertainty, the absence of a uniform process has left stakeholders uncertain about the required disclosures, the regulator’s role, and the enforceability of such agreements.

The new guidelines are part of the CCCS’s broader strategy to modernise its merger oversight. The agency has been looking to align its practice more closely with best‑practice frameworks used in other jurisdictions, such as the United Kingdom’s Competition and Markets Authority (CMA) and the European Commission’s merger policy.

Key Elements of the Draft Guidelines

1. Definition of a Settlement Agreement

The draft clarifies what constitutes a “merger settlement agreement” (MSA). An MSA must be a written agreement that resolves all competition‑law concerns identified in the preliminary review, and it must be submitted to the CCCS for review and approval.

2. Submission and Approval Process

• Pre‑submission consultation: Parties are encouraged to discuss the proposed MSA with the CCCS before finalising the document. This step can help identify potential gaps early on.
• Submission deadline: The CCCS requires that an MSA be submitted no later than 30 days after the preliminary review deadline.
• Approval timeframe: The CCCS promises to review and either approve or reject the MSA within 30 days of receipt. In exceptional circumstances, the regulator can extend this period but must notify the parties in writing.
• Public disclosure: Approved MSAs will be posted on the CCCS website, giving stakeholders and the public visibility into the settlement’s terms.

3. Transparency and Accountability

The guidelines emphasize that settlement agreements should be transparent. This includes: - Disclosure of remedies: The MSA must detail the remedies or divestments that the parties will undertake to address competition concerns. - Monitoring and enforcement: The CCCS will monitor compliance with the MSA’s remedies and retain the right to enforce them if necessary. - Periodic reporting: Parties must submit annual reports on the status of the remedies for five years, ensuring long‑term compliance.

4. Criteria for Approval

The CCCS will consider whether an MSA: - Effectively removes the competition concerns raised in the preliminary review; - Provides adequate consumer protection; - Is fair and non‑discriminatory; - Maintains market dynamism and does not create a de facto monopoly.

5. Discretionary Use of Settlements

While settlements can streamline merger oversight, the guidelines reserve the right for the CCCS to conduct a full merger review if the settlement fails to address the concerns adequately or if there are indications of collusion.

Comparative Insights

In the United Kingdom, the CMA has long used “settlement agreements” as a key tool. The CMA’s guidelines allow for rapid resolution but require the regulator’s approval and public disclosure. Similarly, the European Commission’s merger policy requires that settlement agreements be fully documented and approved, with a focus on ensuring that the remedies are enforceable and effective.

Singapore’s draft guidelines follow this international trend but introduce a specific, time‑bound approval window, a clear pre‑submission consultation phase, and a mandatory reporting schedule for five years. These elements are designed to increase certainty for businesses while ensuring robust consumer protection.

Stakeholder Perspectives

Business groups and law firms have expressed a mix of enthusiasm and caution. The Singapore Business Federation (SBF) welcomed the move, stating that “clearer settlement rules will reduce litigation risk and enhance market confidence.” However, it also urged the CCCS to consider the unique characteristics of the Singaporean market, particularly the high level of foreign investment and the concentration of certain sectors such as fintech and logistics.

Meanwhile, competition‑law specialists note that the guidelines may create a “regulatory middle ground” where parties can settle quickly without compromising the integrity of the competition regime. They also highlight the importance of the CCCS’s monitoring and reporting obligations to prevent post‑settlement abuse.

How to Provide Feedback

The consultation period will close on 3 November 2025. Interested parties can submit comments in writing to the CCCS via email at mergers@cccs.gov.sg or through the online portal on the CCCS website. The agency promises to respond to all submissions and will publish a consolidated reply document summarising key feedback points.

Stakeholders are encouraged to engage early, especially those involved in upcoming merger proposals. The CCCS stresses that the guidelines are not yet final and that public input will shape the final version, potentially influencing the regulatory landscape for years to come.

Anticipated Impact

If adopted, the new merger settlement guidelines will likely: - Speed up merger approvals: By streamlining the settlement review, businesses can avoid the lengthy full‑merger review process. - Reduce regulatory uncertainty: Clear timelines and criteria help parties understand the regulator’s expectations from the outset. - Enhance consumer protection: Mandatory disclosure and monitoring ensure that settlements genuinely protect market competition. - Align Singapore with global standards: The guidelines bring Singapore’s merger policy closer to the practices of major economies, potentially boosting investor confidence.

Ultimately, the CCCS’s initiative represents a proactive effort to modernise competition oversight in an increasingly complex and globalised market. The consultation period will be a critical juncture: the extent to which the guidelines balance efficiency with robust enforcement will shape the future of Singapore’s competition law landscape.