KUALA LUMPUR: Eighty-one umrah travel agencies suspected of being involved in a price-fixing cartel are likely to face penalties from the Malaysia Competition Commission (MyCC).
MyCC, under the Domestic Trade and Cost of Living Ministry (KPDN), has issued a proposed decision against these businesses.
"This cartel behaviour is an infringement under Section 4 of the Competition Act 2010 (Act 712)," MyCC chairman Datuk Seri Mohd Hishamudin Yunus said in a statement.
Preliminary findings, Hishamudin added, indicated that these companies, members of a registered association, agreed to set floor prices for economy and premium umrah packages during meetings in early 2023.
The association subsequently announced these prices to the media.
The list of companies includes GISB Travel & Tours Sdn Bhd, Abeel Travel & Services Sdn Bhd, and Al Haramain Travel & Tours Sdn Bhd, among others.
All but 10 of the listed businesses are licensed to provide Umrah travel services.
Hishamudin said the proposed decision reflects a provisional finding; it does not imply that these companies have infringed the Act.
He added that, as required by the Act, the companies have been notified of the potential penalties.
He said the companies may submit written representations to the MyCC within 30 days of receiving the proposed decision and will also have the opportunity to present oral representations before the commission at a later date.
"MyCC will issue its final decision after considering the representations and evidence gathered during the investigation," he said.