MyCC fines five enterprises for price fixing

KUALA LUMPUR: The Malaysia Competition Commission (MyCC) has imposed a financial penalty of RM645,774 on five enterprises for infringing Section 40 of the Competition Act 2010.
The decision was issued by MyCC against an information technology service provider for the shipping and logistics industry in Penang, Containerchain (M) Sdn Bhd, for engaging in price-cartel activities, involving namely Containerchain (M) Sdn Bhd together with four container depot operators, which are Ayza Industries Sdn Bhd/Ayza Logistics Sdn Bhd, ICS Depot Services Sdn Bhd, E.A.E. Depot & Freight Forwarding Sdn Bhd and Prompt Dynamics Sdn Bhd.
MyCC said Containerchain and other container depot operators had agreed to increase depot gate charges imposed on their customers from RM5 to RM25 and along with fixing a rebate of RM5 offered to hauliers in respect of the depot gate charges.
MyCC said the agreement to fix the RM25 depot gate charges together with the RM5 rebate, 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 five to 15km radius of the Penang Port.
In the same decision, MyCC also imposed an additional penalty of RM7,000 a day for failure to comply with remedial actions within 30 days from the date of the decision.
The container depot operators are to cease and desist from implementing the agreed rate for the depot gate charges and rebate, which arose from their anti-competitive conduct.
Containerchain is also to provide an undertaking in the form and manner acceptable to the Commission to reconfigure the Containerchain system to ensure that it is not being used for any anti-competitive conduct.
All future prices and other trading conditions should be determined independently by all container depot operators who have subscribed to the Containerchain system.
“The decision was made after the submission of the written and oral representations by each enterprise. Each of the infringing enterprise has 30 days from the date of the decision to pay the financial penalty,” MyCC said.