MyCC to review all evidence before deciding on PIAM case

PETALING JAYA: The Malaysia Competition Commission (MyCC) will review all evidence, including the central bank’s statement, before making a final decision on the case against the General Insurance Association of Malaysia (PIAM) and its 22 members.
“We hope they will be able to give us fresh evidence, other evidence that we never had the chance to consider in the first place. Perhaps in reviewing that, we may (review) from our proposed decision. We don’t know yet, we are just waiting for the next step that they are going to take,” MyCC chairman Tan Sri Siti Norma Yaakob told reporters at the Malaysia Competition Conference 2017 yesterday.
Siti, who said that MyCC must consider all evidence presented during the representation process, stressed that the RM213.45 million penalty is not a final decision.
“In one case previously, we had even gone against our decision and in the end said, there’s no infringement. So the process is open to them and they are most welcome to do it. We would like to invite them to do the same thing so that we can look at it again, whatever representation they make,” she said.
Last month, MyCC announced a proposed decision to impose the fine due to an agreement between PIAM and the Federation of Automobile Workshop Owners’ Association of Malaysia (Fawoam) for fixed trade discount rates for parts of certain vehicle makes and labour hourly rates for workshops under the PIAM Approved Repairers Scheme.
Both PIAM and Bank Negara Malaysia (BNM) responded saying that the agreement was reached on a BNM directive to resolve significant consumer complaints regarding repair times in the motor insurance industry.
BNM had also said that MyCC’s proposed decision would severely impact consumers’ interest. The parties have 30 days from the receipt of MyCC’s proposed decision to make their representation.
“I’m sure the parties in their submission would make reference to that, therefore it will become part of the submission which we will take into consideration,” said MyCC member and Nilai University vice chancellor Prof Datuk Dr Sothi Rachagan.
While MyCC’s enforcement team have found a breach of Section 4 of the Competition Act 2010, Section 5 of the Act provides for four conditions to be met if the parties choose to seek relief from liability.
“If those (four conditions) are met, we will review whether there is liability and if there is liability, we will look at whether the relief for liability can be done. It is a process,” he added.
He said the RM213.45 million penalty seems large as there are 22 companies involved but the amount is only 1% of the global turnover of the companies for the period of the breach whereas the Act permits MyCC to impose a fine of up to 10%.
Since Jan 1, 2012, MyCC has received 293 complaints, of which 250 have been resolved. It is currently investigating 13 cases and reviewing 12 complaints.
It has finalised two market reviews namely Research on the Fixing of Fees by Professional Bodies in 2013 and Review on the Domestic Broiler Market in Peninsular Malaysia in 2014. A market review on the pharmaceutical sector is ongoing.
It is also preparing to formulate new Guidelines on Intellectual Property and Competition Law, which will be finalised by year-end.