MYCC looking into alleged cartel behaviour

MYCC looking into alleged cartel behaviour
Business & Markets 2013
Written by Bernama
Thursday, 02 January 2014 17:22

KUALA LUMPUR (Jan 2): The Malaysia Competition Commission (MyCC) has begun preliminary enquiries regarding the alleged cartel-like price increases in ice and stationery supplies.

The move follows a recent announcement via advertisement placed in local newspapers on 24th December by several ice manufacturers of their decision to increase the price of edible tube ice by 50 sen per bag and RM2.50 per block of ice beginning January 2014.

The Federation of Stationers and Booksellers Association of Malaysia also announced an increase in stationery prices following the association president’s announcement published on 27th December of higher stationery prices by the first quarter of 2014.

The move also follows through a directive by the Minister of Domestic Trade, Co-operatives and Consumerism who urged the MyCC to look into any possible cartel behavior by The Federation of Stationers and Booksellers Association of Malaysia.

“Price hikes by themselves are not anti-competitive in nature but if the price hikes were a result of collusion through price fixing agreements by any associations or any groups of sellers, suppliers or manufacturers, those are considered a contravention of Section 4 of the Competition Act 2010,” said MyCC Chief Executive Officer, Shila Dorai Raj.

She also added that while stern messages have been given to associations over the past few months to stop colluding and fixing prices, yet rampant behavior of associations recently has given the MyCC no choice but to take measures to stop such behavior.

If enterprises by themselves want to increase prices due to several cost push factors they should do so independently. Associations or groups colluding to decide on price increases are conducting serious infringements of the law.

Maximum penalties of up to 10% of turnover can be imposed if found infringing the act.

Although the MyCC has no role in policing price hikes, if the price hikes were in contravention of Section 4 of the Competition Act 2010, it is under the Commission’s purview to act upon the infringement.

Section 4 of the Competition Act 2010 prohibits enterprises, including associations, from fixing, directly or indirectly a purchase or selling price or any other trading conditions for goods and services.

Any member of the public who has information concerning conduct by associations and business enterprises who are or have engaged in price fixing or cartel-like behavior should contact the MyCC at +603-2273 2277 or via email at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .