PUTRAJAYA: The Malaysian Competition Commission (MyCC) has initiated the process to amend the Competition Act 2010 to give it the power to control mergers and acquisitions of companies.
Domestic Trade and Consumer Affairs Minister Datuk Seri Alexander Nanta Linggi said that unlike those of other countries, Malaysia’s Competition Act 2010 did not give power to the MyCC to control mergers and acquisitions of companies which could lead to the creation of a monopoly in the country.
With the amendments, Nanta said, any merger or acquisition of companies will require prior approval from the MyCC, a move to prevent market concentration that could jeopardise the market.
“Companies that merged without approval can be ordered to demerge and can also be fined,” he said in a statement on Wednesday in response to the suggestions by PKR Members of Parliament Nurul Izzah Anwar and Wong Chen for the competition law in the country to be reviewed based on the monopoly practice by certain companies.
The minister said the MyCC, the ministry’s agency overseeing the enforcement of the Act to protect the process of competition in the commercial market and ensure a conducive culture of competition, is planning to table the amendments to the Act by the end of this year.
Nanta said the MyCC had also taken action against several companies, such as MyEG Services Sdn Bhd, DagangNet Sdn Bhd, Malaysian Airlines and AirAsia, after finding them violating the competition regulations either through agreements, cartel, abuse of dominant power or monopoly.
He said the MyCC had issued its final decision against those companies involving fines of more than RM160 million.
In October 2019, MyCC also looked into the matter involving Grab which was alleged to have abused its dominant position in the market.
The final decision on the matter will be made after hearing and studying Grab’s submissions on the matter.
Grab has challenged the MyCC’s decision in the case at the Appeals Court. – Bernama
Source: The Sun Daily
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