Briefing on Malaysian Competition Act 2010 organised by Ministry of Domestic Trade, Co-operatives and Consumerism were held on 1 September 2010 in Kuching and 2 September 2010 in Sibu.
The speakers of the Briefing sessions were Puan Shila Dorai Raj, Head of Interim Competition Commission Division, Ministry of Domestic Trade, Co-operatives and Consumerism and Dr Wafi Nazrin Abdul Hamid from Malaysia Airlines.
The Malaysian Competition Act 2010 has been gazetted on 10 June 2010 and is expected to be implemented in January 2012.
The Malaysian Competition Act provides a legal framework for curtailing anti-competitive practices in Malaysia and applies to any commercial activity within Malaysia and outside of Malaysia insofar as the activity was transacted outside Malaysia but which has an effect on market competition in Malaysia. Currently, activities performed by the energy, communications and multimedia sectors have been exempted by the Act and other commercial activities may be further exempted by Ministerial order from time to time.
The Act introduces 2 main types of prohibition namely, against:
(i) Anti-competitive agreements between enterprises which operate at the same level in the production or distribution chain as well as between enterprises operating at different levels.
The prohibitions generally extend to agreements which have the object of amongst others, price-fixing; sharing market or sources of supply; limiting or controlling production, market outlets or market access, technical or technological development, or investment, and bid rigging.
(ii) Any abuse of a “dominant position” by an enterprise in any market for goods or services.
An enterprise occupies a dominant position in the market if it possesses such significant power in a market to adjust prices or outputs or trading terms, without any restraint from competitors or potential competitors.
The Act empowers the Competition Commission to conduct market reviews, and to carry out investigations and enforcement duties. The Commission provides a platform for any affected enterprises to make written or oral representations concerning any proposed decision or finding of infringement by the Commission, and is also empowered to conduct hearings for the purposes of determining whether an infringement has occurred.
The Act also establishes a Competition Appeal Tribunal which shall have the exclusive jurisdiction to review any decision made by the Commission.
The new competition law is expected to have far-reaching implications on trade by encouraging efficiency, innovation and entrepreneurship and hopefully, on consumers through competitive pricing, improvement in the quality of products and services and the availability of wider choices.
For further information, please contact Puan Shila Dorai Raj, Head of Interim Competition Commission Division, Ministry of Domestic Trade, Co-operatives and Consumerism, Tel: 03-88825595, E-mail: email@example.com