KUALA LUMPUR: The Malaysia Competition Commission (MyCC) has slapped fines totalling almost RM2.2mil on three roll-on/roll-off (Ro-Ro) operators and two other enterprises in Langkawi for forming a cartel to increase fares for commercial vehicles and passenger cars.
The five entities, namely Langkawi Ro-Ro Ferry Services Sdn Bhd, Langkawi Auto Express Sdn Bhd, Dibuk Cargo Services Sdn Bhd, Dibuk Sdn Bhd and Langkawi Ferry Services Sdn Bhd – which operated routes between Langkawi and Kuala Perlis – signed two memorandums of understanding (MOU) in 2018 and 2019 between themselves to fix the fares.
Langkawi Auto Express (a joint venture between Dibuk Sdn Bhd and Langkawi Ferry Services Sdn Bhd) was fined RM1,130,878; Dibuk Cargo Services Sdn Bhd was fined RM250,172; and Langkawi Ro-Ro Ferry Services was fined RM810,531.
Action was taken against them for infringing Section 4 of the Competition Act 2010 by forming a price-fixing cartel.
The Domestic Trade and Consumer Affairs Ministry had instructed MyCC to investigate the similarities of the fares following complaints from the public on the price hikes in Langkawi.
MyCC chief executive officer Iskandar Ismail said the decision was served on the parties involved on Dec 29, 2021.
He said they directed them to cease and refrain from future price increases that might disrupt competition in the market.
“This clearly demonstrated the distortion caused by a cartel in the supply chain that can lead to price increases, which robs people of their hard-earned money – especially Langkawi residents and tourists.
“The action by MyCC serves as a warning to businesses that we have zero tolerance for such activities,” he said in a press conference on Tuesday (Jan 4).
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