Proposal for Formation of "Algorithm Committee" to Look into Allocation Mechanisms of E-commerce, Ride-hail, Delivery and Online Platforms
Ministry of Trade and IndustrySpeakers
Summary
This question concerns the proposal by Mr Chua Kheng Wee Louis to form an "Algorithm Committee" to monitor allocation mechanisms on online platforms for fairness and transparency. Minister Gan Kim Yong responded that existing frameworks, including enforcement under the Competition Act and the AI Markets toolkit, already promote responsible algorithmic use and protect against discriminatory outcomes. He highlighted that the ride-hailing market ensures contestability by prohibiting driver exclusivity and maintaining fare transparency to facilitate informed choices for both commuters and drivers. Furthermore, the Platform Workers Act establishes a framework for workers to negotiate task allocation and incentive structures, with major operators already agreeing to fair earnings principles. Minister Gan Kim Yong stated the Government will continue monitoring AI developments and remain open to forming such a committee should new risks emerge.
Transcript
84 Mr Chua Kheng Wee Louis asked the Deputy Prime Minister and Minister for Trade and Industry whether the Ministry can consider the formation of an "Algorithm Committee" to look into allocation mechanisms of e-commerce, ride-hail, delivery and online platforms, to give suppliers and consumers confidence that there is fairness and transparency in how the platforms operate.
Mr Gan Kim Yong: The Government has measures to promote responsible use of artificial intelligence (AI) and algorithmic systems by platforms, and to protect suppliers and consumers from discriminatory outcomes. For example, the Competition and Consumer Commission of Singapore (CCCS) can take enforcement action against errant businesses under the Competition Act or the Consumer Protection (Fair Trading) Act, for conduct that harms merchants or consumers.
CCCS provides guidance to businesses on best practices for algorithm use, through the recent release of the AI Markets toolkit developed in collaboration with the Infocomm Media Development Authority. The open-source toolkit helps businesses assess their AI models and business practices to ensure competition and consumer protection.
CCCS and the Consumers Association of Singapore also issue advice and tips to encourage consumers to be vigilant and discerning when transacting with platforms, so they can spot potential exploitative practices early.
For the ride-hailing sector, the Government seeks to maintain an open and contestable point-to-point transport market by ensuring drivers and commuters have free choice of operators. This includes prohibiting exclusive arrangements tying drivers to a single platform and ensuring fare transparency so drivers and commuters can make informed choices.
The Platform Workers Act also provides a representation framework for platform work associations and platform operators to engage on issues of concern, including on desired outcomes of task allocation mechanisms. Major platform operators have also agreed with platform work associations on the principles for fair earnings and safe incentive structures. This provides win-win outcomes for consumers, businesses and workers, and balances platform workers' needs and platform operators' ability to match demand and supply.
The Government will continue to monitor for new developments that arise from the use of AI and algorithm systems in platforms' allocation mechanisms. We will stay nimble and explore possible options, including consider the formation of an "Algorithm Committee", where applicable, if new risks emerge.