Competition Law at Malaysia
Here’s an overview of Competition Law in Malaysia:
Competition Law in Malaysia
1. Legal Framework:
The primary legislation is the Competition Act 2010 (Act 712), which came into force on 1 January 2012.
The Act is administered and enforced by the Malaysia Competition Commission (MyCC).
The law aims to promote and protect competitive markets, prevent anti-competitive conduct, and enhance consumer welfare.
2. Objectives:
To prohibit anti-competitive agreements.
To prevent abuse of dominant position.
To regulate mergers that may substantially lessen competition.
To foster a competitive business environment for economic growth.
3. Regulatory Authority:
The Malaysia Competition Commission (MyCC) is the independent enforcement agency.
MyCC investigates complaints, conducts market studies, enforces compliance, and takes legal action.
4. Key Provisions:
Anti-competitive agreements (Section 4):
Agreements between enterprises that have the object or effect of substantially preventing, restricting, or distorting competition are prohibited.
Includes price-fixing, market sharing, bid rigging, and limiting production or technical development.
Abuse of dominant position (Section 10):
Prohibits enterprises with a dominant position from abusing that power.
Examples of abuse include predatory pricing, exclusive dealing, refusal to supply, and unfair trading terms.
A dominant position is generally presumed if a firm holds 40% or more market share.
Merger control (Section 13):
Notification of mergers and acquisitions is voluntary but recommended.
MyCC can investigate mergers that substantially lessen competition.
The Commission has powers to block or impose conditions on mergers.
5. Enforcement and Penalties:
MyCC can conduct investigations, including dawn raids.
Penalties for infringing competition law include fines up to 10% of annual turnover.
Individuals and companies can be prosecuted and fined.
Civil actions for damages are possible under Malaysian law.
6. Recent Developments:
Malaysia continues to strengthen enforcement and promote compliance through guidelines and awareness programs.
Recent cases show active investigation of cartels, abuse of dominance, and anti-competitive agreements in sectors like construction, automotive, and telecommunications.
Summary
Malaysia’s Competition Act 2010 establishes a modern framework to promote competition, prevent anti-competitive conduct, and protect consumers. The MyCC is an active enforcement body ensuring fair business practices in Malaysia’s economy.
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