KUALA LUMPUR (Jan 24): The High Court here has upheld the decision by the Malaysia Competition Commission (MyCC) to slap a penalty of RM9.34 million on e-government services provider MY E.G. Services Bhd (MyEG) for abusing its dominant position.
"The Kuala Lumpur High Court had on Jan 22 upheld the decision of MyCC (on June 24, 2016) against MyEG and its wholly-owned subsidiary MYEG Commerce Sdn Bhd for infringing the Competition Act 2010," MyCC said in a statement today.
“This case is a testament to MyCC’s commitment, without fear or favour, to take stern action against abusive monopoly or dominant players in the market. We will continue to support the government in ensuring that the market is free from any harmful or wasteful monopoly,” said its chief executive officer Iskandar Ismail.
MyCC also said in dismissing the judicial review application by MyEG, High Court Judge Datuk Azizah Nawawi agreed with the Competition Appeal Tribunal’s findings on Dec 28, 2017, which had reaffirmed MyCC’s decision, that MyEG had abused its dominant position by imposing different conditions in equivalent transactions in the purchase of mandatory insurances for the renewal of temporary employment permits for foreign workers (PLKS).
The RM9.34 million penalty comprises a financial penalty of RM307,200 and daily penalties from Oct 7, 2015 to Jan 22, 2019 amounting to RM9.03 million.
Additionally, MyEG is still liable for a daily penalty of RM7,500 per day, until they comply with the directives imposed by MyCC in its decision.
MyCC’s decision against MyEG and MyEG Commerce was the first infringement decision for abuse of dominance since its establishment in 2012.
Shares of MyEG ended the morning session unchanged at RM1.02 today, with 13.01 million shares done, bringing a market capitalisation of RM3.68 billion.