TO compensate for the abuse of its dominant position by engaging in exclusive dealings, Malaysia Competition Commission (MyCC) imposed a financial penalty of RM10.3 mil to Dagang Net Technologies Sdn Bhd (Dagang Net).
Following a thorough investigation and due process, it was found that Dagang Net had infringed Section 10(1) of the Competition Act 2010 by engaging in exclusive dealing through the imposition of exclusivity clauses on software providers from October 2015 to November 2017.
The software providers were of the National Single Window (NSW), an electronic-based ecosystem that enables customs-related documents and transactions to be transferred electronically between the trading communities and regulatory authorities in Malaysia via a single point of entry.
Therefore, the anti-competitive conduct of Dagang Net harms competition in the market since it prevents the 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.
The imposition of the exclusivity clauses constitutes as an abuse of Dagang Net’s dominant position in the relevant market, leaving its competitors at a disadvantage when entering the uCustoms market.
According to MyCC chairman Datuk Seri Mohd Hishamudin Yunus, the granting of a concession is within the power of the Government and that any abusive monopolistic behaviour will nor be tolerated, even if it were to result in the creation of a monopoly.
“MyCC’s decision aims to protect the competition process and lower trade transaction costs for companies in global commerce. Doing so will allow consumers and businesses to benefit from the bolstered efficient, innovation and entrepreneurship,” he said.
The exact fine amount stands at RM10,302,475.98, considering its oral and written presentations as well as the impact of the current economic situation and the presence of mitigation and aggravating factors.
MyCC also directs Dagang Net to cease and to refrain in the future, from engaging in exclusive dealing that may disrupt competition in the provision of trade facilitation services. – Feb 26, 2021
