KUALA LUMPUR: The Competition Appeal Tribunal (CAT) has dismissed My EG Services Bhd’s appeal against the Malaysia Competition Commission (MyCC) slapping a RM2.27 million penalty for allegedly abusing its dominance of online foreign workers permit renewals.
In a filing with Bursa Malaysia today, the e-Government services provider said the tribunal today upheld MyCC’s decision.
In addition to the RM2.27 million fine for the infringement periods of January 5, 2015, to January 22, 2015, and May 2, 2015, to October 6, 2015, there is an additional daily penalty amounting to RM7,500 from June 25, 2016, to December 28, 2017.
CAT ordered MyEG to cease and desist immediately from imposing different conditions to equivalent transactions in the processing of mandatory insurances for online foreign workers' permit renewal applications.
Furthermore, MyEG must, within 60 days, provide an efficient gateway for all its competitors in the market for the sale of the mandatory insurances and allow the other competitors to compete at the same level.
MyEG said its board had reviewed this latest development with the company’s legal counsel and will seek a judicial review and apply for a stay against the CAT’s decision.
“The board of directors wishes to reiterate that the CAT’s decision is not expected to have any material financial and operational impact to the company,” MyEG said.
According to MyCC’s statement in June 2016, it found that MyEG and its wholly-owned unit MyEG Commerce Sdn Bhd had violated the Competition Act 2010 by “abusing its dominant position in harming competition in the downstream market in which MyEG Commerce is participating as an insurance agent for online foreign workers' permit renewal applications.”
MyCC highlighted MyEG’s imposing different conditions to same transactions with its competitors had harmed competition in the downstream market for the sale of mandatory insurances.
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