KUALA LUMPUR (Sept 30): The Malaysia Competition Commission (MyCC) has proposed that a penalty of RM439,000 be imposed on 24 members of the Sibu Confectionery and Bakery Association (SCBA) for fixing prices of confectionary and bakery products in Sibu, Sarawak.
They were found to have agreed to increase the prices of the products by 10% to 15% in Sibu, which was in infringement of Section 4(2) of the Malaysian Competition Act 2010, the regulator said in a statement today.
It said it has served the proposed decision notices to the SCBA members on Sept 30 and has given them until Oct 30 to indicate whether they wish provide a written submission or make an oral representation before the commission.
The enterprises were also directed to take steps to ensure that they stop the infringement and comply with the Competition Act.
“Price fixing is a major concern of the MyCC as the restriction of competition is obvious in any price fixing cases,” said MyCC chief executive officer, Shila Dorai Raj.
“Such an agreement, conducted by these enterprises of different sizes, provides the parties the opportunity to impose higher prices to maximise profitability without any competition,” she said.
MyCC was first alerted to the infringement through media reports late last year. Upon investigation, it found that the 24 members of SCBA have agreed to fix the increase in the prices of confectionery and bakery products during SCBA’s second annual general meeting on Nov 17, last year.
The agreed increase in prices was subsequently publicised through a press statement issued by Houng Sien Meu, the Chairman of SCBA, and later picked up by the media.