KUALA LUMPUR – The Malaysia Competition Commission (MyCC) has imposed a RM10.3 million fine on Dagang Net Technologies Sdn Bhd for abusing its dominant position by engaging in exclusive dealings.
In a statement today, MyCC said Dagang Net infringed Section 10(1) of the Competition Act 2010 by engaging in exclusive dealings through the imposition of exclusivity clauses on software providers of the National Single Window (NSW) from October 2015 to November 2017.
“The anti-competitive conduct of Dagang Net harms competition in the market because it prevents software providers from providing similar services to end users (in this case, the manufacturers, importers, exporters, freight forwarders and shipping agents) in the upcoming uCustoms system.”
Dagang Net has been the operator of Malaysia’s 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.
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.”
Meanwhile, 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. – Bernama, February 26, 2021
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