MyCC warns MyEG for not paying financial penalty

The Main Market-listed MyEG told Bursa Malaysia yesterday that its sub-subsidiary, MyEG (Indonesia) Sdn Bhd, has entered into a share subscription agreement and a shareholders

KUALA LUMPUR: The Malaysia Competition Commission (MyCC) has warned MyEG Services Bhd for not complying with the decision of the Competition Appeal Tribunal to pay a daily penalty of RM7,500, now totaling RM9.46mil.

MyCC  said in a statement on Friday the e-government services provider MyEG had continuously been in non-compliance with the CAT’s decision dated Dec 28, 2018 which affirmed MyCC’s June 24, 2016 decision. 

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

“The daily penalty of RM7,500.00 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 RM9.46mil,” it said. 

MyCC is the primary competition authority responsible for safeguarding the competition process in Malaysia. It also said it was prepared to take all actions deemed necessary to ensure MyEG’s compliance with the directives.

On Jan 25, MyEG was reported to have stated it would appeal against the daily penalty imposed by MyCC for abusing its market position in the provision and management of online foreign workers’ permit renewal.

MyEG stated it would file an appeal to the Court of Appeal after the KL High Court upheld MyCC’s decision under Section 10(2)(d)(iii) of the Competition Act 2010 for abusing its dominant position.

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

“Consequently, MyEG was ordered to pay a penalty of RM9.337mil 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 RM9.03mil.