DNeX unit faces RM17m fine from MyCC

By MARK RAO / Pic By MUHD AMIN NAHARUL

Dagang NeXchange Bhd’s (DNeX) private vehicle, Dagang Net Technologies Sdn Bhd, is facing a RM17.4 million fine by the Malaysia Competition Commission (MyCC) for allegedly abusing its position of monopoly for its services under the National Single Window.

Following its investigation, MyCC said the company was found to be in breach of Section 10(1), read with Section 10(2)(c) of the Competition Act 2010, in relation to its provision of trade facilitation services for the electronic trade gateway launched in 2009.

“The investigation has provisionally found that Dagang Net had abused its dominant position by refusing to supply new and/or additional electronic mailboxes to end users, who utilised front-end software from software solutions providers which were not considered to be Dagang Net’s authorised business partners,” it said in a statement yesterday.

“Dagang Net was also provisionally found to have imposed an exclusivity clause on its business partners.”

This is said to distort competition in the market by creating barriers to entry for competitors, while making them less efficient when competing with Dagang Net.

MyCC said the granting of concessions, which may result in monopolies, is within the power and discretion of the government. Incidences of abuse, however, will be penalised under its authority and the relevant laws.

The commission is proposing to fine Dagang Net RM17.4 million for its alleged abuse of position, and impose a cease and desist order on the company for any infringing conduct or conduct that disrupts competition in the market.

Directors and senior management of the company and related companies will also be made to undergo a competition law compliance programme within the next three months.

DNeX said it intends to contest the decision by MyCC. “The company and Dagang Net, in consultation with their external legal counsels, will take all necessary and appropriate actions to challenge the proposed decision,” it said.

MyCC’s decision is not final and Dagang Net has until Aug 20 this year to submit its written representation and notify the commission if it intends to make an oral representation.

The Competition Act 2010 came into force on Jan 1, 2012. Dagang Net is a wholly owned unit of DNeX.