MyCC probes insurer-vehicle repair workshop practices

PETALING JAYA: The Malaysia Competition Commission (MyCC) is investigating a number of general insurance companies, including their association, for alleged anti-competitive agreements in relation to the automobile repair industry in Malaysia.

In a statement yesterday, MyCC CEO Datuk Abu Samah Shabudin said the investigation involves commercial activities between vehicle repair workshops and general insurers, particularly trade discounts on prices of spare parts for certain vehicle makes as well as the labour rates paid to the workshops.
According to the Competition Act 2010, agreements deemed to be anti-competitive include price fixing in the market in which the enterprises compete.

MyCC’s Guidelines on Chapter 1 Prohibition: Anti-Competitive Agreements further provide that price fixing includes fixing the price itself or fixing an element of the price, such as fixing discount, setting a percentage price increase or setting the permitted range of prices between competitors.

MyCC said it will continue to monitor the activities of all trade associations, including professional bodies, to ensure that they do not indulge in activities which could stifle competition among them and infringe any of the provisions under the Act.

Infringing the Act may attract a financial penalty of not more than 10% of the worldwide turnover of an enterprise over the period of the infringement.