The Malaysia Competition Commission (MyCC) today found MyEG Services Bhd to have infringed Section 10 of the Competition Act 2010 by abusing its dominant position in the provision and management of the Foreign Workers Permit Renewal applications online, to the extent that it may harm competition.
MyCC in its statement today said the commission had initiated a 'proposed decision' to commence its investigation on MyEG pursuant to the complaints filed by numerous parties.
The investigation found that the MyEG has harmed the level of competition in the selling of mandatory insurance policies; the Foreign Workers Hospitalisation and Surgical Scheme (FWHS) and Foreign Workers Compensation Scheme (FWCS)] for online foreign workers permit renewal applications.
“This follows MyEG competing against other insurance companies in the market. MyEG’s wholly owned subsidiary, MyEG Commerce Sdn. Bhd, is an agent of RHB Insurance Berhad which sells the mandatory insurances,” MyCC.
Following this, MyCC is proposing imposing a financial penalty of RM307,200 and an additional penalty of RM15,000 for each day MyEG fails to comply with the following remedial actions:
- that MyEG Commerce terminate the existing agency agreements relating to the mandatory insurances and shall not enter into similar nature of agency agreements; and that
Forced on employers
MyCC said the `proposed decision' was a written notice setting out the facts on which the commission makes its assessment and its reasons for arriving at the proposed decision.
Companies, it added are allowed 30 days from the receipt of the `proposed decision' to make their representations.
“MyCC will then make its final decision after it considers the representations and all the available information and evidence,” he said.
The Competition Act 2010 came into force on Jan 1, 2012 and as such, businesses ought to have complied with the provisions of the Competition Act 2010.
It was previously reported that the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM), together with other local chambers of industry and trade organisations, complained that the MyEG system was being forced on employers.