MyCC fines Dagang Net RM10.3mil for exclusive dealing

 

The Malaysia Competition Commission says the anti-competitive conduct of Dagang Net ‘harms competition in the market’.

KUALA LUMPUR: The Malaysia Competition Commission (MyCC) imposed a RM10.3 million fine against Dagang Net Technologies Sdn Bhd (Dagang Net) for the abuse of its dominant position by engaging in exclusive dealing.

MyCC said Dagang Net had infringed Section 10(1) of the Competition Act 2010 by engaging in exclusive dealing through the imposition of exclusivity clauses on software providers of the National Single Window (NSW) from October 2015 to November 2017.

“The anti-competitive conduct of Dagang Net harms competition in the market because it prevents software providers from providing similar services to end users (in this case, the manufacturers, importers, exporters, freight forwarders and shipping agents) in the upcoming uCustoms system,” it said in a statement today.

Dagang Net, a subsidiary of Dagang NeXchange Bhd, is the government’s sole service provider in the provision of online trade facilitation services for Sistem Maklumat Kastam under the NSW.

MyCC chairman Mohd Hishamudin Md Yunus.

The NSW is an electronic-based ecosystem that enables customs-related documents and transactions to be transferred electronically between the trading communities and regulatory authorities in Malaysia via a single point of entry.

MyCC concluded that the imposition of the exclusivity clauses constitutes an abuse of Dagang Net’s dominant position in the relevant market, which leaves its competitors at a competitive disadvantage when entering the uCustoms market.

“In the decision, MyCC also directs Dagang Net to cease and refrain in the future from engaging in exclusive dealing that may disrupt competition in the provision of trade facilitation services.

“The commission further directs that the directors and senior management executives of the company to enrol in competition law compliance training at their own expense,” the statement said.

Meanwhile, MyCC chairman Mohd Hishamudin Md Yunus said the granting of a concession was within the power of the government.

“Although it may result in the creation of a monopoly, either directly or indirectly, nevertheless, any abusive monopolistic behaviour will not be tolerated,” he said.

He warned that stern action would be taken by MyCC against monopolies that sabotage the Malaysian economy.

The decision will be made available soon for public viewing via www.mycc.gov.my. - FMT