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High Court of Malaysia Upheld the Decision of MyCC against MyEG for abusing its dominant position

2019, Malaysia, Abuse of Dominance

The High Court of Kuala Lumpur on 22 January 2019, upheld the decision of MyCC against MY E.G. Services Berhad and MYEG Commerce Sdn. Bhd. (hereinafter collectively referred to as MyEG) under section 10(2)(d)(iii) of the Competition Act 2010 for abusing its dominant position.
In dismissing the judicial review application by MyEG, High Court Judge Datuk Hajjah Azizah Hj. Nawawi agreed with the Competition Appeal Tribunal’s findings which reaffirmed MyCC’s decision that MyEG had abused its dominant position by imposing different conditions in equivalent transactions in the purchase of mandatory insurances for the renewal of Pas Lawatan (Kerja Sementara) (PLKS) for foreign workers.

Consequently, MyEG was ordered to pay a penalty of RM 9.337 million in total for such infringement. This includes a penalty of RM 307,200.00 and daily penalties from 7 October 2015 to 22 January 2019 amounting to RM 9.030 million. At the same time, MyEG is still liable for a daily penalty of RM 7,500.00 per day until they comply with the directives imposed by MyCC in its decision.