DNeX unit gets RM17.4mil penalty proposal from MyCC

PETALING JAYA: The Malaysia Competition Commission (MyCC) has proposed a RM17.4mil penalty on Dagang Net Technologies Sdn Bhd for allegedly abusing its position as a monopoly in the provision of trade facilitation services under the National Single Window.

Dagang Net is a wholly owned subsidiary of Dagang Nexchange Bhd (DNeX).

MyCC said in a statement that the investigation on Dagang Net was commenced pursuant to complaints received by the commission.

“The investigation has provisionally found that Dagang Net had abused its dominant position by refusing to supply new and/or additional electronic mailboxes to end-users who utilised front-end software from software solutions providers who were not considered to be Dagang Net’s authorised business partners.

“Dagang Net was also provisionally found to have imposed an exclusivity clause on its business partners, which would have had the effect of distorting competition in an upcoming market by creating barriers to entry for Dagang Net’s competitors in the said market, which would have made the said competitors less than efficient when competing with Dagang Net,” it said.

MyCC has also proposed to impose a directive on Dagang Net to cease and desist its infringing conduct and any future conduct which may disrupt competition in the present and future market.

In addition, it has proposed that the directors and senior management of Dagang Net and its related companies undergo a competition law compliance programme within three months of the issuance of the proposed decision.

Dagang Net has 30 days from the date of receipt of the proposed decision to make its representations to the commission.

The commission will then make its final decision after it has considered the said representations and all the available information and evidence.