My EG Services is among the five Malaysian companies on Forbes
KUALA LUMPUR: Malaysia Competition Commission (MyCC) proposes to impose a financial penalty of RM307,200 against the My E.G. Services Bhd
(MyEG) for infringing Section 10 of the Competition Act 2010.
MyCC said on Tuesday MyEG had abused its dominant position in the provision and management of online Foreign Workers Permit Renewal (PLKS) applications, by applying different conditions to equivalent transactions with other trading parties to the extent that may harm competition.
MyCC commenced its investigation on the MyEG pursuant to the complaints filed by numerous parties.
“The investigation found that the MyEG has harmed the level of competition in the selling of mandatory insurance policies Foreign Workers Insurance Guarantee (FWIG); Foreign Workers Hospitalization and Surgical Scheme (FWHS); and Foreign Workers Compensation Scheme (FWCS)] for online PLKS renewal applications as the MyEG is also competing against other insurance companies in the market,” it said.
The anti-competition body also said MyEG’s unit MyEG Commerce Sdn Bhd was an agent of the RHB Insurance Bhd which sells the mandatory insurances.
MyCC proposed to impose a financial penalty of RM307,200.00 and an additional penalty of RM15,000 for each day MyEG fails to comply with the following remedial actions:
i. the MyEG Commerce to terminate the existing agency agreements relating to the mandatory insurances and shall not enter into similar nature of agency agreements; and
ii. the MyEG to provide an efficient gateway to all insurance companies selling the mandatory insurances which allow them to compete at the same level.
MyCC is allowed under the law to impose a financial penalty of up to 10% of the worldwide turnover of each enterprise and any remedial action.
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