This article first appeared in The Edge Financial Daily on July 13, 2018

KUALA LUMPUR: Dagang NeXchange Bhd (DNeX) said yesterday it will challenge the Malaysia Competition Commission’s (MyCC) 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.

DNeX 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 Aug 20 to submit its written representation and also indicate to the commission whether it intends to make an oral representation before the commission.

“The company (DNeX) and Dagang Net, in consultation with their external legal counsels, will take all necessary and appropriate actions to challenge the proposed decision,” it added.

The commission had announced the proposed fine, together with a proposed directive to Dagang Net, to cease its anti-competition conduct in a media statement on Wednesday.

“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 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 statement read.