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High court upholds MyCC’s ruling against Dagang Net

The High Court dismissed Dagang Net’s judicial review, affirming a RM10.3 million penalty for abusing its dominant market position in the trade facilitation sector.

KUALA LUMPUR: The High Court has dismissed Dagang Net Technologies Sdn. Bhd.’s application for judicial review, upholding the Malaysian Competition Commission’s (MyCC) findings of abuse of dominance.

The court’s decision last Friday affirmed MyCC’s 2021 ruling and a subsequent 2023 dismissal by the Competition Appeal Tribunal.

Dagang Net was ordered to pay RM20,000 in costs to MyCC.

The commission had originally imposed a RM10.3 million financial penalty on the company for infringements between October 2015 and November 2017.

MyCC found Dagang Net, as the sole government-appointed National Single Window service provider, abused its monopoly.

The abuse involved imposing exclusivity clauses on software suppliers, restricting their collaboration with others in the UCustoms system.

This conduct was found to contravene Section 10(1) of the Competition Act 2010 by restricting overall market competition.

MyCC Executive Officer Datuk Haji Iskandar Ismail said the ruling validates the commission’s work to curb dominance abuses.

“This case demonstrates the importance of MyCC’s efforts in protecting the competitive process,” he said.

He warned that restricted competition stifles innovation and development, with consequences borne by Malaysians.

Iskandar added that MyCC will continue to act firmly against any behaviour threatening healthy competition.

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