Dagang NeXchange to challenge MyCC fine

> Watchdog proposes penalty of RM17.4m on Dagang Net, alleges it abused its position

PETALING JAYA: Dagang NeXchange Bhd (DNeX) will challenge the Malaysia Competition Commission’s (MyCC) decision to impose a fine of RM17.4 million on its wholly owned subsidiary Dagang Net Technologies Sdn Bhd for alleged abuse of dominant power.

The group said in a filing with the stock exchange that the proposed decision by MyCC is not final and it has been given until Aug 20 to submit its written representation and indicate to MyCC whether it intends to make an oral representation before MyCC.

“The company and Dagang Net in consultation with their external legal counsel will take all necessary and appropriate actions to challenge the proposed decision.”

MyCC alleged that Dagang Net had abused its position as a monopoly in the provision of trade facilitation services under the National Single Window, refusing to supply the electronic mailboxes to end users of the Customs Information System and also imposing barriers to entry to the extent that may harm competition.

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.

MyCC proposed a directive on Dagang Net to cease and desist the infringing conduct of imposing any future clauses in its MyChannel Partner agreements and any future conditions that new and/or additional mailboxes will not be provided to end users.

It also proposed that Dagang Net’s directors and senior management enrol in a competition law compliance programme and training within three months.