MyCC warns MyEG over RM9.5m penalty

By FARA AISYAH

The Malaysia Competition Commission (MyCC) has issued a warning to MyEG Services Bhd for its continuously non-compliance with the order to pay a penalty which has to date accumulated to RM9.46 million.

MyCC said it has instructed its solicitors to demand compliance with the remedial orders as set out in paragraphs 58(iii) and 58(iv) of the Competition Appeal Tribunal (CAT) Decision and for the payment of the daily penalty, upon the dismissal of MyEG’s Judicial Review application by the High Court on Jan 22, 2019.

“The daily penalty of RM7,500 will continue to accumulate until compliance by MyEG with the directives imposed by the CAT in paragraph 58 of the CAT Decision. The total financial penalty, to date, has accumulated to RM9.46 million.

“MyCC is prepared to take all actions deemed necessary to ensure MyEG’s compliance with the directives,” it noted in a statement last week.

In dismissing the judicial review application by MyEG, High Court Judge Datuk Azizah Nawawi agreed with the CAT’s findings, which reaffirmed MyCC’s decision that MyEG had abused its dominant position by imposing different conditions in equivalent transactions in the purchase of mandatory insurances for the renewal of Pas Lawatan (Kerja Sementara) for foreign workers.

Consequently, MyEG was ordered to pay a penalty of RM9.34 million in total for such infringement, which includes a penalty of RM307,200 and daily penalties from Oct 7, 2015, to Jan 22, 2019, amounting to RM9.03 million.

At the same time, MyEG is still liable for a daily penalty of RM7,500 per day until the company complies with the directives imposed by MyCC in the decision.

MyEG has been in continuous engagement with MyCC to ensure the latter is not construed to be abusing its dominant position, perceived or otherwise, in the provision of services related to the online foreign worker permit and insurance renewals.

MyEG had requested for a reduction of the daily penalty in consideration of there having been no earlier notice given on the additional requirements prior to the aforementioned letter and in view the group has been continuously engaged with MyCC. MyEG added that it had already made changes to its systems to comply with MyCC’s requirements and officially notified MyCC of its compliance on Nov 18, 2015, and again on Jan 17, 2018.

“As such, the group is now seeking to appeal the magnitude of the penalty imposed on these grounds,” it said in an exchange filing last month.