KUALA LUMPUR, 30 Dec 2017:
The Competition Appeal Tribunal (CAT) had dismissed an appeal by My E.G. Services Bhd (MyEG) against the RM2.272 million fine imposed on the company by the Malaysia Competition Commission (MyCC) for abusing its dominant position in the provision and management of online renewal for foreign workers permit (PLKS).
The tribunal, presided by Tan Sri Haidar Bin Mohd Nor – in affirming MyCC’s decision – said MyCC had rightly held MyEG and its wholly-owned subsidiary, MyEG Commerce Sdn Bhd, as having abused their dominant position within the meaning of section 10(2)(d)(iii) of the Competition Act 2010.
MyCC said in a statement yesterday the decision was upheld by CAT – whereby, in addition to the financial penalty of RM2.272 million, it also imposed a daily penalty of RM7,500, from June 25 last year to the date of CAT’s decision, which was yesterday.
Thus, the total amount of financial penalty to be paid by MyEG as of 28 Dec 2017 is RM6,412,200 – which includes the daily penalty of RM7,500 from 25 June 2016 amounting to RM4,140,000, it said, adding that the amount might increase if the company failed to comply with CAT’s directions.
In a decision made on June 24 last year, MyCC ruled that MyEG, together with wholly-owned subsidiary MyEG Commerce, had infringed the Competition Act 2010 by “abusing its dominant position in harming competition in the downstream market in which MyEG Commerce is participating as an insurance agent for online PLKS renewal applications.”
MyCC said the CAT had also instructed MyEG to cease and desist immediately from imposing different conditions to equivalent transactions in the processing of mandatory insurances for online PLKS renewal applications.
The e-Government service provider is also required to provide an efficient gateway for all its competitors and potential new entrants in the relevant market for the sale of mandatory insurances and allow the other competitors to compete at the same level within 60 days from the date of CAT’s decision (28 Dec 2017).
Established in June 2011, MyCC is an independent body responsible for enforcing the Competition Act 2010, which was implemented to create healthy competition which would in turn stimulate productivity and innovation, thus creating wider choices of products for consumers with better quality and reasonable prices.
– Bernama