MyCC confirms 'proposed decision' against PIAM, members

KUALA LUMPUR: Malaysia Competition Commission (MyCC) CEO Datuk Abu Samah Shabudin said yesterday it had indeed issued a “proposed decision” on Feb 22, 2017 against the General Insurance Association of Malaysia (Piam) and its 22 members for being parties to an anti-competitive agreement.

He said this was to do with the fixing of the parts trade discount at 25% for six vehicle makes, namely Proton, Perodua, Nissan, Toyota, Honda and Naza, and 15% for the Proton Saga BLM model, as well as the labour hourly rate of RM30 per hour for Piam Approved Repairers Scheme workshops.

MyCC, while acknowledging that it proposes to impose various remedies including financial penalties against the 22 general insurers, did not confirm the RM213.45 million penalties reported by Allianz Malaysia Bhd in its filing with Bursa Malaysia last Friday.

The MyCC is allowed under the law to impose a financial penalty of up to 10% of the worldwide turnover of each enterprise.

A “proposed decision” is a written notice setting out the facts on which the MyCC makes its assessment and its reasons for arriving at the decision.

This is issued to the enterprises concerned to assist them to make representations and provide any other information to support their representations to the MyCC.

The enterprises concerned have 30 days from the date of receipt of the proposed decision to make their representations in accordance with Section 36 of the Act. The MyCC will then make its final decision after it has considered the representations and all the available information and evidence.