KUALA LUMPUR: The Malaysia Competition Commission (MyCC) has issued a proposed decision against four container depot operators and an information technology service provider to the shipping and logistics industry for engaging in price fixing.
These container depot operators are Ayza Industries Sdn Bhd/Ayza Logistics Sdn Bhd, ICS Depot Services Sdn Bhd, EAE Depot & Freight Forwarding Sdn Bhd, and Prompt Dynamics Sdn Bhd and the information technology service provider to the shipping and logistics industry is in the Penang area, namely Containerchain (M) Sdn Bhd (Containerchain).
Upon completion of its investigation, the MyCC provisionally finds that Containerchain has engaged in concerted practices with the container depot operators which resulted in the container depot operators increasing the Depot Gate Charges imposed on their customers from RM5 to RM25 and the container depot operators offering a rebate of RM5 to hauliers on the agreed depot gate charges.
According to a statement, MyCC also provisionally finds that the Container Depot Operators entered into a price fixing agreement which 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.
The MyCC has proposed to impose financial penalty and other remedies on each enterprise as it is allowed under the law to impose a financial penalty of up to 10 per cent of the worldwide turnover of each enterprise.
The proposed decision is a written notice setting out the facts on which the MyCC makes its assessment and its reasons for arriving at the proposed decision.
It is issued to the enterprises concerned to assist them to make representations and provide any other information to support their representations to the MyCC.
In this regard, the enterprises concerned have thirty days from the date of receipt of the Proposed Decision to make their representations.
MyCC will then make its final decision after it would have considered the representations and all the available information and evidence.
The Competition Act 2010, which came into force on January 1, 2012, prohibits businesses from entering into any agreement which has the object or effect of preventing, restricting or distorting competition in any market for goods and services in Malaysia.
Businesses should independently determine their reactions to competition and refrain from participating in any discussion, coordination, or plan with their competitors which is anti-competitive in nature.