Hot Stock MyEG falls 3.09% after MyCC imposes fine

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MyEG falls 3.09% after MyCC imposes fine

By Surin Murugiah / theedgemarkets.com   | June 27, 2016 : 9:37 AM MYT 


KUALA LUMPUR (June 27): Shares of My EG Services Bhd (MyEG) fell 3.09% in early trade today after the Malaysian Competition Commission (MyCC) decided to fine MyEG 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".
At 9.12am, MyEG lost 6 sen to RM1.88 with 368,000 shares traded.
MyCC found 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.
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 of its competitors in the market sale of the mandatory insurances, and let these competitors 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 that MyEG does not comply with any of the abovementioned remedial actions, the commission is at liberty to impose a higher daily penalty for the subsequent period of non-compliance, said MyCC.