KUALA LUMPUR – Dagang Net Technologies Sdn Bhd will appeal against the Malaysia Competition Commission’s (MyCC) finding that the company abused its dominant position by engaging in exclusive dealings.
In a statement today, Dagang Net, a wholly owned subsidiary of Dagang NeXchange Bhd, confirmed that it received the notice of finding from MyCC, pursuant to Section 40 of the Competition Act 2010, yesterday.
The firm has been imposed a RM10.3 million penalty.
“We would like to affirm that Dagang Net has always conducted its business in full compliance with all relevant laws and regulations,” said the statement.
“In consultation with our external legal counsel, we will take all necessary and appropriate actions to appeal against the decision.
“We would like to assure all our customers that services provided by Dagang Net will operate as usual.”
Dagang Net has been the operator of Malaysia’s National Single Window (NSW) for Trade Facilitation since 2009.
Connected to the Customs Information System, the NSW for Trade Facilitation eases electronic customs-related transactions and duty payments, and electronic document transfers in the country’s trading community, made up of manufacturers, importers, exporters, forwarders, shipping agents, terminal and port operators, banks, port authorities, permit issuing agencies and customs officials.
Yesterday, MyCC concluded that the imposition of the exclusivity clauses constitutes an abuse of Dagang Net’s dominant position in the relevant market, leaving its competitors at a disadvantage.
“In the decision, MyCC also directs Dagang Net to cease and refrain in the future from engaging in exclusive dealings that may disrupt competition in the provision of trade facilitation services.
“The commission further directs that the directors and senior management executives of the company enrol in competition law compliance training at their own expense.”
It was also reported that MyCC chairman Datuk Seri Mohd Hishamudin Yunus said the granting of a concession is within the government’s power.
“Although it may result in the creation of a monopoly, either directly or indirectly, any abusive monopolistic behaviour will not be tolerated.”
He warned that stern action will be taken against monopolies that sabotage the economy. – The Vibes, February 27, 2021
