On 28 December 2017 the Malaysia Competition Appeal Tribunal (CAT) upheld the infringement decision by the Malaysia Competition Commission (MyCC) in June 2016, which marked MyCC’s first abuse of dominance case since its establishment in 2012. The CAT upheld MyCC’s financial penalty of RM2.27 million (approximately £420,000) and further increased this by RM4.14 million (approximately £760,000), taking the total fine to RM6.41 million (approximately £1.2 million). The increased penalty reflects the accumulated daily penalty for the continuation of the infringing conduct in the period from the date of MyCC’s decision to the date of the CAT’s judgment.
In Malaysia, online foreign workers permit (PLKS) renewal applications can only be processed if the foreign worker’s employer purchases three mandatory insurance policies (the Mandatory Insurance Policies). My EG Services Bhd (My EG) was previously granted the sole right to renew PLKS and its subsidiary, My EG Commerce Sdn. Bhd. (My EG Commerce), sold insurance policies, including the Mandatory Insurance Policies.
The CAT agreed with MyCC’s findings that My EG and My EG Commerce abused their dominant position by:
- essentially obliging users to purchase the Mandatory Insurance Policies from My EG Commerce; and
- requiring users who purchase any Mandatory Insurance Policy from a provider other than My EG Commerce to undertake extra verification steps in order to obtain their PLKS renewals. Users who did not purchase Mandatory Insurance Policies from My EG Commerce were hence treated differently from those who purchased Mandatory Insurance Policies from My EG Commerce.