MyCC Issues Proposed Decision Against 31 Childcare Operators Over Alleged Price Fixing

KUALA LUMPUR, Dec 29 (Bernama) -- The Malaysia Competition Commission (MyCC) has issued a proposed decision against 31 childcare service enterprises in Kelantan for their alleged involvement in a horizontal price fixing agreement.

MyCC, an agency under the Ministry of Domestic Trade and Cost of Living (KPDN), provisionally found the enterprises to have infringed Section 4(1), read together with Sections 4(2)(a) and 4(3) of the Competition Act 2010 (Act 712).

Its chairman, Tan Sri Idrus Harun, said investigations revealed that the enterprises had discussed and subsequently agreed to fix floor prices for childcare services during an association meeting convened in September 2023.

“The decision reached at the meeting was later communicated to all attendees through a memorandum,” he said in a statement today.

Idrus added that following the meeting, a public announcement was made via the association’s official Facebook account, stating that childcare centre operators had unanimously agreed to fix floor prices for childcare services effective from 2024.

He said MyCC found that such an agreement had the object of significantly preventing, restricting or distorting competition in the provision of childcare services within the state of Kelantan.

However, Idrus stressed that the proposed decision represents only a provisional finding and should not be construed as a conclusive determination that the enterprises have infringed Act 712.

“The enterprises named in the proposed decision were notified of the proposed penalties and directions today.

“They have been given 30 days from the date of receipt of the proposed decision to submit their written representations and will also be allowed to present oral representations before the Commission on a date to be determined,” he added.

He said MyCC will issue its final decision only after considering all representations and the evidence obtained during the investigation.

-- BERNAMA