Business

Competition Commission secures major legal victory against Dagang Net

High Court upholds monopoly ruling and RM10.3 million fine for abuse of dominant market position

Updated 8 months ago · Published on 08 Dec 2025 5:59PM

Competition Commission secures major legal victory against Dagang Net
MyCC concluded that the company’s monopoly enabled it to impose exclusive clauses on software providers operating within the NSW ecosystem - December 8, 2025

THE Malaysian Competition Commission (MyCC) has scored a significant legal win after the High Court on Friday dismissed Dagang Net Technologies Sdn. Bhd.’s application for judicial review, reaffirming findings that the company had abused its dominant market position in violation of competition law.

The ruling confirms MyCC’s original 2021 determination and follows a 2023 decision by the Competition Appeal Tribunal (TRP) which upheld the commission’s findings.

The case originated from MyCC’s investigation into Dagang Net’s role as the sole provider of online trade facilitation services to the government under the National Single Window (NSW) system.

MyCC concluded that the company’s monopoly enabled it to impose exclusive clauses on software providers operating within the NSW ecosystem, limiting their ability to collaborate with other stakeholders in the UCustoms system and restricting overall market competition.

“For the period between October 2015 and November 2017, MyCC imposed a financial penalty of RM10.3 million on Dagang Net,” the commission stated.

“Dissatisfied with the decision, Dagang Net appealed to the Competition Appeal Tribunal, which after thorough review, fully upheld MyCC’s findings, including the financial penalty.”

The company subsequently sought a judicial review at the High Court to challenge the TRP’s decision. On 5 December, the court rejected Dagang Net’s application in full, affirming MyCC’s ruling and maintaining the TRP’s decision.

 Additionally, the High Court ordered Dagang Net to pay RM20,000 in legal costs, a move MyCC described as an endorsement of its enforcement credibility.

MyCC Chief Executive Officer Datuk Iskandar Ismail said the ruling represents a meaningful recognition of the commission’s ongoing efforts to tackle abuses of dominant positions in monopolistic markets.

“This case has undergone a challenging journey but ultimately demonstrates the importance of MyCC’s work in protecting competitive processes.

“When competition is blocked, opportunities for growth are lost, innovation is stifled, and ultimately, the Malaysian public bears the cost,” he said.

“MyCC will not remain silent when such conduct occurs. We will continue to act decisively against any behaviour that threatens healthy competition.” - December 8, 2025

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