The Malaysia Competition Commission (MyCC) has proposed to impose a financial penalty of RM307,200 on My EG Services Bhd (MyEG) for infringing section 10 of the Competition Act 2010.
MyCC said that MyEG had abused its dominant position in the provision and management of the online Foreign Worker Permit Renewal (PLKS) applications, by applying different conditions to equivalent transactions with other trading parties to the extent that may harm competition.
MyCC commenced its investigations into MyEG following complaints lodged by numerous parties.
“The investigation found that MyEG has harmed the level of competition in the selling of mandatory insurance policies – the Foreign Workers Insurance Guarantee; the Foreign Workers Hospitalisation and Surgical Scheme; and the Foreign Workers Compensation Scheme – for online PLKS renewal applications, as MyEG is also competing against other insurance companies in the market,” it said.
The anti-competition body also said MyEG’s unit, MyEG Commerce Sdn Bhd, was an agent of RHB Insurance Bhd, which sells the mandatory insurances.
MyCC has proposed to impose a financial penalty of RM307,200 and an additional penalty of RM15,000 for each day MyEG fails to comply with the following remedial actions:
> MyEG Commerce is to terminate the existing agency agreements relating to the mandatory insurances and shall not enter into a similar nature of agency agreements; and
> MyEG is to provide an efficient gateway to all insurance companies selling the mandatory insurances which allow them to compete at the same level.
MyCC is allowed under the law to impose a financial penalty of up to 10% of the worldwide turnover of each enterprise and any remedial action.
Meanwhile, in response to the statement, MyEG told Bursa Malaysia that the proposed decisions by MyCC were not final.
“The management will review the proposed decisions with our external legal counsel and will submit a written representation and will make an oral representation to MyCC within the specified period of time to defend against the allegations made by the MyCC,” it said.
Source: The Star Online | 7 Oct 2015