MYCC issues proposed decision against 5 container related firms

PETALING JAYA: The Malaysia Competition Commission (MyCC) has issued a proposed decision against four container depot operators and an information technology (IT) service provider, for engaging in price fixing.
The operators are Ayza Industries Sdn Bhd/Ayza Logistics Sdn Bhd; ICS Depot Services Sdn Bhd; E.A.E. Depot & Freight Forwarding Sdn Bhd; Prompt Dynamics Sdn Bhd; and Containerchain (M) Sdn Bhd, an IT service provider to the shipping and logistics industry in Penang.
In a statement yesterday, MyCC said it proposed to impose financial penalty and other remedies on each enterprise.
The MyCC is allowed under the law to impose a financial penalty of up to 10% of the worldwide turnover of each enterprise.
"The proposed decision is a written notice setting out the facts on which the MyCC makes its assessment and its reasons for arriving at the proposed decision.
"It is issued to the enterprises concerned to assist them to make representations and provide any other information to support their representations to the MyCC," it said.
In this regard, the MyCC said the enterprises concerned have 30 days from the date of receipt of the proposed decision to make their representations.
The MyCC will then make its final decision after considering the representations and all the available information and evidence.
According to the MYCC, upon completion of its investigations, it provisionally found that Containerchain engaged in concerted practices with the operators which resulted in the operators increasing the Depot Gate Charges imposed on their customers from RM5 to RM25 and the operators offering a rebate of RM5 to hauliers on the agreed depot gate charges.
The MyCC also provisionally found that the operators entered into a price fixing agreement which is deemed to have the object of significantly preventing, restricting or distorting competition in the market for the provision of empty
container storage maintenance and handling services within a 5-15km radius of the Penang Port.
The Competition Act 2010, which came into force on Jan 1, 2012, prohibits businesses from entering into any agreement which has the object or effect of preventing, restricting or distorting competition in any market for goods and services in Malaysia.
Businesses should independently determine their reactions to competition and refrain from participating in any discussion, coordination, or plan with their competitors which is anti-competitive in nature.ends