KUALA LUMPUR (July 12): Dagang NeXchange Bhd said today that it will challenge the Malaysia Competition Commission's proposed decision to penalise the company's wholly-owned subsidiary Dagang Net Technologies Sdn Bhd for alleged abuse of its position as a monopoly in the provision of trade facilitation services under the National Single Window.
 
Dagang NeXchange told Bursa Malaysia that the commission's proposed decision, which includes a financial penalty of RM17.4 million, is not final. This is because Dagang Net has been given until August 20, 2018 to submit its written representation and also indicate to the commission whether it intends to make an oral representation before the commission.

"The company (Dagang NeXchange) and Dagang Net in consultation with their external legal counsels will take all necessary and appropriate actions to challenge the proposed decision," Dagang NeXchange said. 

Dagang NeXchange confirmed today that it had on Tuesday (July 10) received the commission's proposed decision notice. The commission announced the proposed decision in a media statement yesterday (July 11).

Yesterday, the commission said: "In relation to the case of Dagang Net, the commission proposed to impose a financial penalty of RM17,397,695.30. In addition, the commission proposed to impose a directive on Dagang Net to cease and desist its infringing conduct and any future conduct which may disrupt competition in the present and future market. The commission also proposed that the directors and senior management of Dagang Net and its related companies to undergo a competition law compliance programme within three (3) months of the issuance of the proposed decision." 

"The proposed decision is a written notice setting out the facts on which the commission makes its assessment and its reasons for arriving at the proposed decision. It is issued to the enterprises concerned to assist them in making representations and provide any other information to support their representations to the commission," the commission said.

At Bursa Malaysia today, Dagang NeXchange shares settled at 37.5 sen at 12:30pm. Dagang NeXchange saw some 12 million shares traded.