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MyCC imposes RM2.27m in penalties on MyEG services

Bernama

Published
Modified 24 Jun 2016, 11:05 am

The Malaysia Competition Commission (MyCC) has imposed RM2.27 million in financial penalties on MyEG Services Bhd after it was found abusing its dominant position in the provision and management of online Foreign Workers Permit (PLKS) renewals.

In a statement today, MyCC said the amount comprised RM307,200 in fines for the infringement periods of Jan 5-22, 2015 and May 2-Oct 6, 2015, as well as daily penalty of RM7,500 from Oct 7, 2015 to-date.

"The daily penalty is imposed on MyEG after taking into account that the abusive conduct still subsists.

"Furthermore, MyEG has yet to provide an efficient gateway for all its competitors in the market of the sale of the mandatory insurances and thereby does not allow the other competitors to compete at the same level as directed by the commission in its decision," MyCC said.

It said it had initiated an investigation under section 15(1) of the Competition Act 2010 based on numerous complaints alleging that MyEG had abused its dominant position in the provision and management of online PLKS renewals.

Pursuant to its investigation, the MyCC found that MyEG, together with MyEG Commerce, had infringed section 10(2)(d)(iii) of the Act by abusing its dominant position in harming competition in the downstream market.

"MyEG Commerce is participating as an insurance agent for online PLKS renewal applications," it said.

On top of the financial penalty, the commission also imposed remedial actions on MyEG which included to cease and desist immediately from imposing different conditions to equivalent transactions in the processing of mandatory insurances for online PLKS renewal applications.

MyEG is also required to provide an efficient gateway for all its competitors in the market of sale of the mandatory insurances and allow other competitors to compete at the same level within 60 days from today.

The commission also required MyEG to provide an undertaking in the form and manner acceptable to the commission, to be fully compliant with the rules and regulations of General Insurance Association of Malaysia within 60 days from today.

"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," it added.

- Bernama

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