MyCC probes in­surer-ve­hi­cle re­pair work­shop prac­tices

The Sun (Malaysia) - - SPEAK UP -

PETALING JAYA: The Malaysia Com­pe­ti­tion Com­mis­sion (MyCC) is in­ves­ti­gat­ing a num­ber of gen­eral in­surance com­pa­nies, in­clud­ing their as­so­ci­a­tion, for al­leged anti-com­pet­i­tive agree­ments in re­la­tion to the au­to­mo­bile re­pair in­dus­try in Malaysia.

In a state­ment yes­ter­day, MyCC CEO Datuk Abu Samah Shabudin said the in­ves­ti­ga­tion in­volves com­mer­cial ac­tiv­i­ties be­tween ve­hi­cle re­pair work­shops and gen­eral in­sur­ers, par­tic­u­larly trade dis­counts on prices of spare parts for cer­tain ve­hi­cle makes as well as the labour rates paid to the work­shops.

Ac­cord­ing to the Com­pe­ti­tion Act 2010, agree­ments deemed to be an­ti­com­pet­i­tive in­clude price fix­ing in the mar­ket in which the en­ter­prises com­pete.

MyCC’s Guide­lines on Chap­ter 1 Pro­hi­bi­tion: Anti-Com­pet­i­tive Agree­ments fur­ther pro­vide that price fix­ing in­cludes fix­ing the price it­self or fix­ing an ele­ment of the price, such as fix­ing dis­count, set­ting a per­cent­age price in­crease or set­ting the per­mit­ted range of prices be­tween com­peti­tors.

MyCC said it will con­tinue to mon­i­tor the ac­tiv­i­ties of all trade as­so­ci­a­tions, in­clud­ing pro­fes­sional bod­ies, to en­sure that they do not in­dulge in ac­tiv­i­ties which could sti­fle com­pe­ti­tion among them and in­fringe any of the pro­vi­sions un­der the Act.

In­fring­ing the Act may at­tract a fi­nan­cial penalty of not more than 10% of the world­wide turnover of an en­ter­prise over the pe­riod of the in­fringe­ment.

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