KUALA LUMPUR (April 15): Steelmaker Megasteel Sdn Bhd, the country's largest hot rolled coil (HRC) producer, has been cleared by the Malaysia Competition Commission (MyCC) of abusing its dominant position by charging or imposing a price for its HRC that amounts to a margin squeeze, which in turn leads to anti-competitive effects in the cold rolled coil (CRC) market.

In a filing with Bursa Malaysia today, Lion Corp Bhd said a notice of finding of non-infringement from MyCC today, determined there was no infringement by its 78.89%-owned subsidiary Megasteel of section 10(1) of the Competition Act, 2010.

"The final decision was made after careful reassessment of the case, with more detailed information obtained through written and oral representations submitted by Megasteel, as well as further analysis made by MyCC," it added.

The anti-trust watchdog had in November last year, issued its proposed decision that Megasteel had breached the provision of section 10(1), in that the latter had abused its dominant position by charging or imposing a price for its HRC that amounts to a margin squeeze. This had produced anti-competitive effects in the CRC market.

Under the proposed decision, a financial penalty of RM4.5 million was to be imposed by MyCC on Megasteel.

Lion Corp shares closed unchanged at 5 sen today, for a market capitalisation of RM65.81 million.