Friday 29 Mar 2024
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This article first appeared in The Edge Financial Daily on January 10, 2020

KUALA LUMPUR: The Malaysia Competition Commission (MyCC) has proposed to fine seven warehouse operators for engaging in price cartel activities.

It issued the proposed decision against seven warehouse operators for infringing Section 4 of the Competition Act 2010 in relation to the price-fixing of surcharges on long-length handling and heavy lift handling services, for all import and export cargoes in Northport and Westport areas, in Port Klang.

The seven are Regional Synergy (M) Sdn Bhd, WCS Warehousing Sdn Bhd, Pioneerpac Sdn Bhd, Interocean Warehousing Services Sdn Bhd, Intrexim Sdn Bhd, SAL Agencies Sdn Bhd and Prima Warehousing Sdn Bhd, said MyCC chief executive officer Iskandar Ismail at a press conference here yesterday.

MyCC, however, did not announce the proposed penalties, as it has imposed a new policy to only announce the amounts once a final decision has been reached. Iskandar said this is because the penalties amount may change, depending on the outcome of the review of representations submitted by the affected party or parties.

Nevertheless, Iskandar said the penalty will not exceed 10% of an enterprise’s worldwide turnover over the period when the infringement occurred.

He emphasised this is a proposed decision, saying the warehouse operators will have 30 working days to present their defence against the allegations against them.

“Warehousing is a crucial element in the ecosystem and usually the extra cost will be passed on to consumers. MyCC will continue its effort to combat price-fixing cartels, for the benefit of consumers, who are now grappling with [the] cost of living,” he said.

Moving forward, he stressed that MyCC will not stop its hunt for price-fixing cartels, whose actions he said is tantamount to “daylight robber” and a supreme evil that is against competition laws and must be stopped for consumers’ protection.

Hence, he urged corporates that infringed the law to “surrender” themselves to the commission. “These cartel members have options. [They can] come and admit what they have done for leniency. We can give them up to 100% discount for the fine if they admit (their wrongdoing) and cooperate with us in the investigation,” he added.

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