MyEG fined RM2.27m for abusing dominant provision in foreign worker permit renewal market
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MyEG fined RM2.27m for abusing dominant provision in foreign worker permit renewal market
MyEG fined RM2.27m for abusing dominant provision in foreign worker permit renewal market
By Kamarul Anwar / theedgemarkets.com | June 24, 2016 : 4:52 PM MYTKUALA LUMPUR (June 24): The Malaysian Competition Commission (MyCC) has decided to fine MyEG Services Bhd a total of RM2.27 million, and possibly impose daily fines going forward, for “abusing its dominant position in the provision and management of online Foreign Workers Permit renewals.”
In a statement today, the independent body said the fine consists of a financial penalty of RM307,200 for the infringement periods between Jan 5, 2015 and Jan 22, 2015, plus May 2, 2015 and Oct 6, 2015. The bulk however came from the daily fine of RM7,500 from Oct 7, 2015 up to today, as MyCC said the abusive conduct persisted during the period.
“It is the MyCC’s finding that MyEG together with MyEG Commerce Sdn Bhd had infringed section 10(2)(d)(iii) of 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 Foreign Workers Permit renewal applications.
“Different conditions were imposed to equivalent transactions with its competitors to the extent that it has harmed competition in the downstream market for the sale of mandatory insurances,” MyCC explained.
There are three remedial actions that MyCC wants MyEG to take. First, the concessionaire of Malaysian E-Government MSC Flagship Application has to immediately stop imposing different conditions to equivalent transactions in the processing of mandatory insurances for online Foreign Workers Permit renewal applications.
MyCC next wants MyEG to provide “an efficient gateway for all its competitors in the market sale of the mandatory insurances” and let these competitors to compete at a level-playing field within 60 days from today.
Thirdly, MyEG has to provide an undertaking in the form and manner acceptable to MyCC. The company has to then be fully compliant with the rules and regulations of General Insurance Association of Malaysia, also within 60 days.
“In the event MyEG does not comply with any of the above mentioned remedial actions, the commission is at the liberty to impose a higher daily penalty for the subsequent period of non-compliance,” said MyCC.
MyCC said it conducted the investigation on MyEG under section 15(1) of the Act, as it had received numerous complaints alleging MyEG had abused its dominant position in the provision and management of online Foreign Workers Permit renewals.
MyEG has been in the red for the whole of this week, dropping by 6.34% from last Friday’s close of RM2.05 to RM1.92 at 3:51 p.m. today. It had a market capitalisation of RM4.59 billion.
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