DNeX gets more time to challenge MyCC's proposed fine

This article first appeared in The Edge Financial Daily, on August 21, 2018.
DNeX gets more time to challenge MyCC's proposed fine
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KUALA LUMPUR: E-services provider Dagang NeXchange Bhd (DNeX) now has up until Sept 3 to submit its written representation to challenge the Malaysia Competition Commission’s (MyCC)proposed decision to impose a penalty of RM17.4 million on the group.

DNeX said in a stock exchange filing yesterday that its wholly-owned unit Dagang Net Technologies Sdn Bhd had obtained the time extension. Dagang Net has also indicated to MyCC its intention to make an oral representation before the commission.

On July 10, MyCC issued a proposed decision against Dagang Net for allegedly abusing its position as a monopoly in the provision of trade facilitation services under the National Single Window platform.

“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 utilised front-end software from software solutions providers which were not considered to be Dagang Net’s authorised business partners,” MyCC said in a statement at the time.

Following that, DNeX announced on Bursa Malaysia that it would challenge the proposed fine, and that it had been given until yesterday to submit its written representation to the commission and to indicate if it would make an oral representation to the commission.

With the time extension it has obtained now, the group has a little over two weeks to submit the written representation to make its case.

DNeX shares rose 1.25% or 0.5 sen to settle at 40.5 sen yesterday, after about 4.62 million shares were traded, giving it a market capitalisation of RM711.9 million.