Umrah Travel Companies In Hot Soup Over Cartel Behaviour

KUALA LUMPUR, Sept 30 (Bernama) -- Eighty-one Umrah travel companies face possible penalties from the  Malaysia Competition Commission (MyCC) over price-fixing.

They are suspected of being involved in a price-fixing agreement to provide Umrah travel services in Malaysia starting in 2023.

In this regard, MyCC has issued a proposed decision against the 81 companies.

Its chairman, Datuk Seri Mohd Hishamudin Yunus, said the companies' cartel behaviour violates Section 4 of the Competition Act 2010 (Act 712).

"Through investigation at the proposed decision stage, MyCC found that all of these companies, which are members of registered associations in Malaysia, agreed to set a floor price for both economy and premium Umrah package services in several of their meetings in early 2023.

"MyCC also found that the association also made a media announcement to inform the public about the floor price that had been agreed upon by them," he said.

Among the companies involved are GISB Travel & Tours Sdn Bhd, Abeel Travel & Services Sdn Bhd, Abu Rizki Travel & Tours Sdn Bhd, Afiq Travel & Tours Sdn Bhd and Ajua Travel & Tours Sdn Bhd.

Mohd Hishamudin explained that the proposed decision issued by MyCC is a preliminary finding, so it cannot be assumed that any of the companies mentioned have violated the Competition Act 2010 at this stage.

He said that, as provided in the act, all the companies named in the proposed decision have been informed of the financial penalty proposed by MyCC.

“These companies are given the opportunity to submit written representations to MyCC within 30 days of receiving the proposed decision.

"After that, the same companies are also given the opportunity to present their oral representations to MyCC on a date to be set later," he said.

He added that the MyCC will issue a final decision after considering the companies' representations and the evidence obtained during the investigation process.

-- BERNAMA