MyCC fines five firms RM645,774 for price fixing

KUALA LUMPUR: The Malaysia Competition Commission (MyCC) has issued a decision on finding of infringements against five companies -- an information technology (IT) services provider to the shipping and logistics industry in the Penang area, and four container depot operators -- for engaging in price-cartel activities.

In a statement, MyCC named the IT services provider as Containerchain (M) Sdn Bhd and the container depot operators as Ayza Industries Sdn Bhd/ Ayza Logistics Sdn Bhd; ICS Depot Services Sdn Bhd; E.A.E. Depot and Freight Forwarding Sdn Bhd; and Prompt Dynamics Sdn Bhd.

In pursuant to section 40 of the Competition Act 2010, MyCC has determined that Containerchain and the container depot operators have infringed section  4(1) of the Act by entering into vertical agreements by way of concerted practices.

It had the effect of the container depot operators increasing the depot gate charges imposed on their customers from RM5 to RM25 and the container depot operators fixing a rebate of RM5 offered to hauliers in respect of the depot gate charges, said MyCC.

It said the price fixing is deemed to have the object of significantly preventing, restricting or distorting competition in the market for the provision of empty container storage, maintenance and handling services within a five to 15 km. radius of Penang Port.

In the same decision, the MyCC imposed a total financial penalty of  RM645,774 on the above five infringing enterprises and an additional penalty of RM7,000 for each day should they fail to comply with remedial actions within 30 days from the date of the decision.

The first remedial action is for the container depot operators to cease and desist from implementing the agreed rate for the depot gate charges and rebate which arose from their anti-competitive conduct.

In line with the above direction, clause 7 of the carrier access arrangement that stipulated the depot gate charge and the rebate or any similar clauses shall be removed as this clause is anti-competitive in nature.

Thirdly, the carrier access arrangement published on the Containerchain system shall not contain any clause which may allow the sharing of confidential information relating to any container depot operator who has subscribed to the Containerchain system.

Fourthly, Containerchain is to provide an undertaking in the form and manner acceptable to the Commission to reconfigure the Containerchain system to ensure that it is not being used for any anti-competitive conduct including those mentioned in the first remedial action.

Finally, all future prices and other trading conditions should be determined independently by all container depot operators who have subscribed to the Containerchain system. - Bernama