KUALA LUMPUR (Feb 9): Statements signalling the market on potential price increase by “certain influential groups of enterprises” are unnecessary, said the Malaysia Competition Commission (MyCC).

In a terse statement Wednesday (Feb 9), MyCC said it is aware of recent statements made by certain groups that have warned consumers amongst others, to prepare themselves for prices of food and non-food items to go up by 10% and also on the projected disruption of certain essential food items until Ramadhan and Aidilfitri “allegedly due to the prolonged discussion on subsidy”.

The MyCC said it views such statements with deep concern.

“It is to be noted that these entities have strong leverage in the relevant markets and as such the statements could amount to an attempt to shape the conduct of enterprises in the market.

“Such actions, if found to have the object of significantly preventing, restricting or distorting competition in the market, can raise competition concerns under the Competition Act 2010,” it said.

MyCC said the statements by these entities are unnecessary and can cause fear amongst consumers.

It said price signalling “may include invitation to collude or making public statements that have potential anti-competitive effects of pricing disclosures and may amount to a violation under either generic prohibitions of anti-competitive agreements, or concerted practices prohibitions”.

“All entities should be minded to focus their efforts and join arms with the government in finding the best mechanism to address the issues.

“We would like to remind all groups, especially federations of associations or associations of traders or enterprises to refrain from issuing similar statements and any similar statements to the effect in the future,” it said.

MyCC chief executive officer Iskandar Ismail said the agency will continue to actively monitor and assess the impact of anti-competitive price signalling and price disclosures; investigate anti-competitive information disclosure and exchanges; and, where appropriate, take enforcement actions including imposing appropriate penalty and direction against the parties concerned.