31 childcare centres in Kelantan accused of price-fixing

According to a proposed decision by MyCC, the enterprises were involved in an agreement to establish minimum rates for childcare services in the state.

MyCC chairman Idrus Harun said the decision to fix prices was shared via a memorandum and announced openly via the association’s official Facebook account.

PETALING JAYA:

 Thirty-one childcare centres in Kelantan are facing penalties over their alleged involvement in a price-fixing arrangement, under a proposed decision issued by the Malaysia Competition Commission (MyCC).

MyCC chairman Idrus Harun said the enterprises were found to have infringed upon several sections of the Competition Act 2010, involving an agreement to establish minimum rates for childcare services within the state.

He said investigations found that the enterprises had determined this during an association meeting in September 2023.

“The decision was then shared with all those in attendance at the meeting via a memorandum and announced openly via the association’s official Facebook account.

“The announcement stated that all the childcare enterprises involved had reached an agreement to set a floor price effective 2024,” Utusan Malaysia reported him as saying.

Idrus said the agreement clearly aimed to “significantly prevent, restrict or distort competition” in the provision of childcare services in Kelantan.

However, he said the proposed decision is a provisional finding and does not yet constitute a final determination of infringement.

“All the enterprises involved have been notified of the proposed penalties and given 30 days to submit their written representations to MyCC.

“The enterprises will also be given an opportunity to present oral representations before the commission at a date to be set,” he said. - FMT