SINGAPORE – A beverage container return scheme jointly established by three leading beverage firms will not violate anti-competition laws, according to a ruling by Singapore’s competition watchdog on January 3.
The three companies – Coca-Cola Singapore Beverages, F&N Foods, and Pokka – had sought guidance from the Competition and Consumer Commission of Singapore (CCCS) to determine whether their collaboration in launching the Beverage Container Return Scheme (BCRS) Ltd would breach the Competition Act.
The CCCS, in its response, confirmed that this is the first application it has received regarding joint efforts to meet environmental sustainability goals, following the issuance of a guidance note on such collaborations in March 2024. The Commission’s assessment concluded that the establishment and operation of the BCRS is unlikely to infringe the Competition Act.
The guidance note, which offers clarity on how businesses can collaborate without hindering competition, specifies that collaborations designed to achieve sustainability goals will not automatically violate competition laws, provided they lead to economic benefits, such as cost savings.
According to the CCCS, the BCRS collaboration does not infringe sections 34 and 47 of the Competition Act. Section 34 prohibits agreements or practices that restrict competition within any market in Singapore, while Section 47 addresses the abuse of a dominant market position.
Concerns about potential price hikes due to the scheme were raised during a public consultation in September 2022. Some respondents worried that producers would pass the scheme’s costs onto consumers, leading to higher beverage prices. The National Environment Agency (NEA) addressed these concerns by stating that price competition among industry players would likely moderate any cost pass-through to consumers.
When questioned about how the three companies’ collaboration would avoid distorting price signals, the CCCS highlighted several factors in its assessment. These included measures to prevent the sharing of commercially sensitive information between the companies, the not-for-profit structure of the scheme’s operator, and the regulatory oversight that will govern its operations.
Scheduled for launch on April 1, 2026, after multiple delays, the BCRS will operate as a not-for-profit entity responsible for managing the return and recycling of beverage containers. Under the scheme, consumers will pay an additional 10 cents for each bottled or canned drink ranging from 150ml to 3 litres, with a full refund available upon the return of the empty container at designated return points.
The announcement of the guidance comes after the CCCS’s advice to the NEA on addressing potential competition concerns in the development of the scheme. CCCS CEO Alvin Koh expressed support for Singapore’s environmental goals, while emphasizing the importance of maintaining fair competition in the market. Koh encouraged businesses to engage with the CCCS early in their sustainability initiatives to ensure compliance with the Competition Act.
The BCRS, which was granted its operational license by the NEA in July 2024, will collect, sort, and recycle beverage containers, establish return points, and ensure transparency in stakeholder fees. The scheme is set to run for seven years, until March 31, 2033, in line with its licensing period.
To ensure ease of participation, more than 1,000 return points will be set up in supermarkets and communal areas across the island. The NEA aims to achieve a return rate of 80 percent by 2029, recycling approximately 800 million of the one billion drink containers estimated to be released annually into the market.
The BCRS is part of Singapore’s broader effort to meet its environmental sustainability targets, with a focus on improving recycling rates and reducing waste.
Related topics
