MyCC investigating several insurance companies

KUALA LUMPUR: The Malaysia Competition Commission (MyCC) is investigating several general insurance companies under the Competition Act 2010 for allegedly being involved in anti-competition agreements in the motor vehicle repair industry in the country.

MyCC Chief Executive Officer Datuk Abu Samah Shabudin said the MyCC was investigating commercial activities between vehicle repair workshops and general insurance companies especially concerning discounts on certain car spare parts as well as the labour cost that must be paid to the workshops.

"Under the Competition Act 2010, agreements considered as anti-competition include agreements on fixing prices in the market where the industries compete.

"Chapter 1 in the MyCC Guidelines on Prohibition: states that anti-competition agreements covered the fixing of prices including the fixing of a particular price and the fixing of price elements such as the fixing of
discounts, the fixing of the percentage in price increase or the fixing of a minimum and maximum price between competitors," he said in a statement, here today.

In this regard, Abu Samah said the MyCC would continue to monitor the activities of associations including professional bodies to ensure that all the related industries were not involved in activities that could prevent, prohibit or interfere in competition in the market and violated any provision in the act.

"Any violation of the act could result in the industry being imposed a monetary penalty of 10% of its total revenue throughout the period of violation," he said.

The MyCC, which was set up in June 2011, is an independent body responsible for enforcing the Competition Act 2010. — Bernama