Businesses compete on prices, quality and services, in order to win new customers and new markets. When they collude and fail to compete, customers do not get the best products at the best prices.
For ST, no short-term gain will ever be worth damaging our reputation or the trust of our customers. That’s why we define our business strategy autonomously and engage in practices that promote fair competition.
We must carefully monitor the information we exchange to ensure it does not involve alignment on any matters or the sharing of sensitive information. Even the appearance of engaging in anti-competitive behaviors must be avoided.
What does it mean?
Unfair competition, refers for example, to anti-competitive agreements that damage the long-term success and the markets that we operate in. They are heavily punished by the authorities.
It may take the form of:
- Exchanging sensitive information with competitors;
- Price alignment;
- Market sharing;
- Tying agreements;
- Harmonizing commercial conditions;
- Price discrimination;
- Bid rigging.
We do not engage in these actions to win or retain business.
Our Do’s
- We actively promote fair and free competition.
- We compete in the right way.
- We provide training to identify and prevent anti-competitive practices.
Avoiding unfair competition
in practice
Because real life is rarely as clear-cut as theory, here are the answers to a few questions you might have
I am participating in a trade conference gathering professionals in the field. During the meeting, one participant offered to share information about price or production volume. What should I do?
Stop the discussion, make it clear that we do not engage in exchanges of sensitive information, and leave the meeting. Make sure it is included in the minutes.
If you are not sure, stop the conversation and seek advice with the Legal department or the Ethics, Compliance & Privacy department.
A competitor proposes that we could focus all our commercial efforts in the Americas, while they focus all of theirs in Asia. What should I do?
This is called market partitioning. Engaging in market allocation is illegal, anti-competitive, and against ST policy. Refuse the request and report the incident to the Ethics Hotline.