MyCC expects response from airlines very soon

KUALA LUMPUR: The Malaysia Competition Commission (MyCC) expects to receive response from AirAsia Bhd and Malaysia Airlines (MAS) very soon after allegedly breaching competition laws.

The commission has not yet received any response from the airlines since both were found to be in breach of the market-sharing prohibition in the Competition Act 2010, MyCC chairman Tan Sri Siti Norma Yaakob said.

“They are still thinking about the impact of the decisions, but we will be hearing from them very soon,” she told reporters on the sidelines of the 1st MyCC Competition Law Conference here yesterday.

On Sept 6, the MyCC concluded that in respect of the infringement of Section 4(2)(b) of the Act, the commission would impose a financial penalty of RM10mil on AirAsia and MAS respectively.

MyCC has given the airlines 30 days to argue, either orally or in writing, why they should not be fined RM10mil each.

Both parties were given 30 days from the date the “proposed decision” was served to submit written representations or indicate whether either one or both wished to make oral representations before the MyCC.

On AirAsia’s calls to MyCC to investigate entities that were in monopolistic positions, such as Malaysia Airports Holdings Bhd, Siti Norma said: “There is no need for us to investigate.”

Meanwhile, she said, the commission was awaiting a response from Pan-Malaysia Lorry Owners Association on its plan to raise transportation charges by 15%.

Last Friday, MyCC issued a proposed “interim measures” under Section 35(4) of the Competition Act 2010 against the association, its members and related lorry enterprises on a probable infringement of Section 4(2)(a) of the Competition Act 2010 by agreeing to fix an increase of transportation charges.

The commission had issued the notices to the association and 40 other parties comprising members of the association and lorry enterprises. – Bernama