Malaysia

MyCC warns private medical associations over price-fixing practices

MyCC states if any enterprise is found to have infringed the Act, it may impose financial penalties of up to 10% of the enterprise's worldwide turnover during the infringement period

Updated 1 year ago · Published on 23 May 2025 4:36PM

MyCC warns private medical associations over price-fixing practices
Under the Competition Act 2010, agreements between enterprises, including decisions by associations to set prices or trading conditions, can be deemed anti-competitive - May 23, 2025

THE Malaysia Competition Commission (MyCC) has issued a stern warning to private medical associations in Sarawak, Penang, Selangor, and Kuala Lumpur regarding potential violations of the Competition Act 2010.

In a statement issued by the agency on Friday, MyCC chairman Tan Sri Idrus Harun issued the warning following reports of these associations proposing new charges, such as prescription fees, registration fees, and regulatory compliance charges, which may constitute price-fixing activities.

MyCC emphasised that under Section 4(2)(a) of the Competition Act 2010, agreements between enterprises, including decisions by associations to set prices or trading conditions, can be deemed anti-competitive.

“Such conduct is considered a serious infringement, commonly referred to as cartel activity, and is prohibited regardless of whether the actions have been implemented or merely agreed upon.”

The Commission has specifically urged the Sarawak Private Medical Practitioners Association (SPMPS) to retract any advice encouraging the implementation of new charges.

Additionally, MyCC has called on the Private Medical Practitioners’ Association of Selangor and Kuala Lumpur (PMPASKL) and the Penang Medical Practitioners Society (PMPS) to refrain from holding meetings or taking steps that could lead to collective decisions on setting charges or introducing uniform fees, as such actions may be construed as violations under the Competition Act 2010.

MyCC has stated that if any enterprise is found to have infringed the Act, it may impose financial penalties of up to 10% of the enterprise's worldwide turnover during the infringement period.

The Commission has pledged to take firm enforcement action against any parties involved in anti-competitive behaviour; the statement read.

“The Commission is closely monitoring the situation and urges all stakeholders, particularly in the medical sector, to fully comply with competition laws. MyCC remains committed to upholding a competitive, healthy, and transparent market to protect consumer welfare and the integrity of Malaysia's economy, Idris added. - May 23, 2025

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