MyCC Takes Hard Line Against Cartel Practices

KUALA LUMPUR, Dec 21 (Bernama) -- The Malaysia Competition Commission (MyCC) will focus on taking stern action against companies of all sizes displaying cartel elements and associations that encourage such practices.

Its chairman Tan Sri Idrus Harun stressed that MyCC would act without fear and favour and remained committed to protecting the interests of consumers and ensuring healthy competition in the market.

“MyCC expresses regret over the recent actions of some associations, including announcing price hikes, setting minimum prices for services and goods, and imposing new trade conditions that have had a negative impact on the people’s cost of living.

“This matter raises concerns as it involves critical sectors such as transport, care services, health, and food, which are the people’s basic needs,” he said in a statement here today.

Idrus said that MyCC viewed seriously the actions of associations that had made statements regarding the issue, especially through the media, without considering the impact on the challenges of the people’s survival.

Based on information obtained, he said that an association, through its leader, had attempted to mislead the public by claiming that the announced price increase was merely an expected future rise or a guide price, when in fact, it was the result of a decision influenced by cartel practices.

“MyCC would not be surprised if associations made secret decisions, hoping their actions would go undetected, as they are aware that such conduct violates competition laws,” he said.

According to Idrus, such an announcement could be considered an anti-competitive agreement or cartel, as it involved a decision by association committee members who were also competitors within the industry.

He also said that the announcement could be seen as a signal from the association to its members, intended to widely disseminate the decision and ensure that members carried out the cartel in a coordinated manner.

Idrus emphasised that companies should not resort to colluding to raise prices, setting minimum prices, or imposing new trade conditions that would lead to price hikes in their efforts to solve the issue of rising business costs.

“Such decisions should be made independently and without instructions or decisions from the association. They cannot hide behind the position or membership in the association. The position or membership is not a license to legitimise cartel conduct,” he said.

Idrus said that MyCC’s investigation and enforcement powers would be further strengthened through the amendment of the Competition Act 2010, which was scheduled to be tabled in Parliament early next year, to ensure that such economic sabotage behaviour could be dealt with more effectively through heavier penalties.

MyCC welcomes the cooperation of all parties, including committee or association members who disagree with cartel practices. Complaints can be made directly to the MyCC office, or through https://www.mycc.gov.my or complaints@mycc.gov.my, with confidentiality guaranteed for whistleblowers and complainants.

-- BERNAMA