MyEG to file appeal against MyCC fine

PETALING JAYA: My E.G. Services Bhd (MyEG), which was fined RM2.272 million for abusing its dominant position in the online foreign workers permit (PLKS) renewals, intends to file an appeal to the Malaysia Competition Commission (MyCC).
“The decision is not expected to have any significant financial and operational impact to the company. The board of directors will review the decision with the company’s legal counsel and intends to file an appeal to MyCC with the company’s defence,” it said in a filing with Bursa Malaysia last Friday.
Last Friday, MyCC said in a statement that MyEG, together with My E.G. Commerce Sdn Bhd (MyEG Commerce), had infringed section 10(2)(d)(iii) of 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 PLKS renewal applications.”
MyCC said by virtue of their shareholdings and directorships, MyEG and My E.G. Commerce Sdn Bhd were a single economic unit as defined under the Competition Act 2010. (MyEG Commerce is 100% owned by MyEG.)
MyCC said different conditions were imposed on equivalent transactions with its competitors to the extent that it had harmed competition in the downstream market for the sale of mandatory insurances.
The total financial penalty of RM2.27 million imposed on MyEG comprises a financial penalty of RM307,200 for the infringement periods of Jan 5, 2015 to Jan 22, 2015; and May 2, 2015 to Oct 6, 2015 as well as a daily penalty of RM7,500 from Oct 7, 2015 to the date of the decision.
MyCC also imposed remedial actions on MyEG, the first, which is to cease and desist immediately from imposing different conditions to equivalent transactions in the processing of mandatory insurances for online PLKS renewal applications. The second action is to provide an efficient gateway for all its competitors in the market of sale of the mandatory insurances, which allows the other competitors to compete at the same level within 60 days from the date of the decision.
MyEG also has to provide an undertaking in the form and manner acceptable to the commission, to be fully compliant with the rules and regulations of General Insurance Association of Malaysia within 60 days from the date of the decision.
“In the event MyEG does not comply with any of the above mentioned remedial actions, the commission is at the liberty to impose a higher daily penalty for the subsequent period of non-compliance,” said MyCC.