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30 December 2017

The Competition Appeal Tribunal (CAT) fined R6.4 millio

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My EG Services fined RM6.4million for abusing dominant position

RAHMAT KHAIRULRIJAL
New Straits Times29 December 2017



KUALA LUMPUR: E-government services provider My E.G Services Bhd (MyEG) was fined more than RM6.4million for abusing its dominant position in the renewal of online foreign workers permit.

The Competition Appeal Tribunal (CAT) meted out the decision after dismissing an appeal by MyEG and its subsidiary My E.G Commerce Sdn Bhd to set aside the decision of the Malaysia Competition Commission (MyCC) on June last year which found the appelants infringing section 10 (2) of the Competition Act 2010.

In a statement, CAT presided by Tan Sri Haidar Mohd Nor said there were no compelling grounds for the tribunal to interfere with MyCC’s decision.

“We are in view that MyCC rightly held that the appellants had abused their dominant position and thus we affirm with MyCC’s decision and ordered the appellants to pay a penalties which include total penalty of RM2.2 million and a daily penalty of RM7,500 from 25 June 2016 to the date of CAT’s decision yesterday.

MyCC in a statement in June last year found that the appellant MyEG had violated the Competition Act 2010 by abusing its dominant position in harming competition in the downstream market in which MyEG Commerce is participating as an insurance agent for online foreign workers' permit renewal applications.

MyCC said MyEG had imposed different conditions to the very same transactions with its competitors which had harmed competition in the downstream market for the sale of mandatory insurances.

Its chief executive officer Datuk Abu Samah Shabudin added the commission was adamant to ensure that companies in a dominant position will not abuse their position as this could lead to a negative impact on consumers and the national economy as a whole.

“MyCC had previously investigated several dominant players such as Megasteel Sdn. Bhd., Giga Shipping Sdn. Bhd. and Nexus Mega Carriers Sdn. Bhd. in the steel and logistics industry respectively.

“Although not all of these investigations resulted in financial penalties being imposed on the said parties due to non-infringement of the Competition Act, the MyCC will continue, without fear or favour, to be vigilant in ensuring competition law is adhered to and will not hesitate to take firm action against those who violate the law,” he said.

He said the commission also would focusing and targeting companies who working hand-in-glove with cartel activities such as price fixing, setting trading conditions by way of rebates and discounts and market allocation and sharing.

“Some of the companies that were investigated by the MyCC for cartel activity include players from the aviation industry, ice manufacturing, logistics and sand traders,” he said. © New Straits Times Press

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