Dagang NeXchange falls 5.06% as unit faces RM17m fine by MyCC

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KUALA LUMPUR (July 12): Dagang NeXchange Bhd fell 5.06% this morning after the Malaysia Competition Commission (MyCC) proposed to fine Dagang Net Technologies Sdn Bhd, a subsidiary of Dagang NeXchange, RM17.4 million for abusing its position as a monopoly in the provision of trade facilitation services under the National Single Window.

At 9.04am, Dagang NeXchange fell 2 sen to 37.5 sen with 2.70 million shares done.

"The investigation on Dagang Net was commenced pursuant to complaints received by the Commission. The investigation has provisionally found that Dagang Net had abused its dominant position by refusing to supply new and/or additional electronic mailboxes to end users who utilized front-end software from software solutions providers which were not considered to be Dagang Net's authorised business partners," said MyCC in a statement.

This is an infringement of Section 10(1), read together with Section 10(2)(c) of the Competition Act 2010.

MyCC said it has proposed to impose a financial penalty of RM17.4 million, as well as to have Dagang Net cease and desist its infringing conduct and any future conduct which may disrupt competition in the present and future market.

Additionally, it has proposed that the directors and senior management of Dagang Net and its related companies undergo a competition law compliance program within three months of the issuance of the proposed decision.