MYEG FINED MORE THAN RM6.4 MILLION
Penalty for abuse of dominant position in renewal of workers’ online permits
E-GOVERNMENT services provider My E.G. Services Bhd (MyEG) was fined more than RM6.4 million for abusing its dominant position in the renewal of foreign workers’ online permits.
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) in June last year, which found the appellants infringing section 10 (2) of the Competition Act 2010.
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 MyCC’s decision and order the appellants to pay penalties, which include a 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 MyEG had violated the Competition Act 2010 by abusing its dominant position in harming competition in the downstream market, in which MyEG Commerce was participating as an insurance agent for foreign workers’ online permit renewal applications.
MyCC said MyEG had imposed different conditions to the 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, said the commission was adamant that companies in a dominant position should not abuse their position, as this co-uld 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.
“Although not all of these investigations resulted in financial penalties being imposed on the said parties due to non-infringement of the Competition Act, 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 the commission would also focus on and target companies who worked 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 investigated by the MyCC for cartel activities include players from the aviation industry, ice manufacturing, logistics and sand traders,” he said.