MyCC fines 24 bakeries RM439,000 for price fixing

PETALING JAYA: The Malaysia Competition Commission (MyCC) yesterday proposed financial penalties of RM439,000 on 24 enterprises who are members of the Sibu Confectionery and Bakery Association (SCBA), for colluding to increase prices of confectionery and bakery products.
The competition commission said in its statement that the enterprises were found to have come to an agreement to increase the prices of confectionery and bakery products by 10% to 15% in Sibu effective Dec 1, 2013.
MyCC said they infringed Section 4(2)(a) of the Competition Act 2010 by doing so and had directed the enterprises to take steps to ensure that they stop the infringement and comply with the Act.
According to MyCC CEO Shila Dorai Raj, price fixing is a major concern as the restriction of competition is obvious in any price fixing cases.
"Such an agreement, conducted by these enterprises of different sizes, provides the parties the opportunity to impose higher prices to maximise profitability without any competition," she said.
Shila said the proposed decision should serve as a deterrent to other associations of enterprises and groups of enterprises who engage in price fixing agreements.
"This practice should be stopped in order to ensure that the Malaysian economy works well for the Malaysian taxpayers," she added.
MyCC said it will continue to monitor and investigate such practices and take enforcement actions. "Enterprises are free to set their own prices independently without discussing with their competitors," it said.
The 24 enterprises have 30 days to submit written representations or indicate whether any of them wishes to make oral representations before the MyCC.
On another note, MyCC warned enterprises, association of enterprises and group of enterprises to not use the introduction of the Goods and Services Tax (GST) as a means to get together to fix the prices of goods or services.
"The MyCC will investigate and take appropriate enforcement action against enterprises or association of enterprises or group of enterprises found to be using the introduction of GST to fix prices," said Shila.