Dagang Net may be fined RM17.4mil for allegedly abusing its monopoly as Customs Dept service provider

  • Nation
  • Wednesday, 11 Jul 2018

PETALING JAYA: The Malaysia Competition Commission (MyCC) has proposed a RM17.4mil penalty against Dagang Net Technologies Sdn Bhd (Dagang Net) for infringing the Competition Act 2010.

MyCC said the proposal came about after Dagang Net was found to be provisionally breaching Section 10(1) and Section 10(2)(C) of the Competition Act 2010.

The findings were made by the MyCC during an investigation on Dagang Net after several complaints were lodged with the commission, it said in a statement issued Wednesday (July 11).

According to MyCC, Dagang Net was found to be infringing Section 10(1) and Section 10(2)(C) of the said Act by allegedly abusing its position as a monopoly under the Customs Department’s National Single Window (NSW) for trade facilitation services.

MyCC said its investigations had found Dagang Net allegedly refusing to supply new and/or additional electronic mailboxes to end users who uses front-end software from providers which were not considered to be Dagang Net’s authorised business partners.

Dagang Net was also found to have imposed an exclusivity clause on its business partners which could undermine the ability of its competitors in the market.

At the same time, MyCC also suggested that Dagang Net’s directors, senior management, and related companies undergo a competition law compliance program.

MyCC added that Dagang Net has 30 days from Wednesday (July 11) onwards, to reply to the Commission.

The Commission will then make its final decision after it has considered the reply and all the available evidence.

While acknowledging that the granting of concessionaires is within the power and discretion of the government, MyCC said it will not hesitate to take action against companies found to have displayed “anti-competitive behaviour”.

“A robust competition would bring significant long and short-term benefits in terms of competitive pricing, improved quality and wider choices of products and services to consumers,” it added.

Dagang Net has been the operator for the Customs Department’s NSW for trade facilitation since 2009.

Its contract was initially supposed to end on Sept 24, 2018, but an extension of a year was awarded by the Barisan Nasional government last December, pushing the expiry of its contract to Aug 31, 2019.