Malaysia’s anti-trust regulator today warned lorry owners against raising their rates by 15%, saying it was against the law.
The Malaysian Competition Commission (MyCC) said it was proposing a series of interim measures under Section 35(4) of the Competition Act 2010 against the Pan-Malaysia Lorry Owners Association (PMLOA), its members and related lorry enterprises to desist from action that would infringe Section 4(2)(a) of the Competition Act 2010.
“This follows the warning given earlier by the MyCC to associations not to facilitate anti-competitive behaviour, especially price fixing,” MyCC chief executive Shila Dorai Raj said in a statement in Kuala Lumpur tonight.
“It serves to further reinforce the fact that the MyCC is seriously looking at evidence of anti-competitive behaviour in the rampant price hikes following the recent rationalisation of fuel subsidy,” she said.
The action comes weeks after MyCC proposed to fine Malaysia Airlines and AirAsia RM10 million each for monopoly in four routes during their shortlived eight-month pact.
The commission considered that it was necessary for it to impose such measures under Section 35(4) of the Act to prevent serious and irreparable economic damage and to protect public interest.
The MyCC has issued the notices to PMLOA and 40 other parties comprising members of the PMLOA and lorry enterprises.
Under the proposed interim measures, MyCC wants PMLOA, members of PMLOA and the relevant lorry enterprises to suspend the effect of, and desist from acting in accordance with, the decision made by PMLOA during its 3rd central committee meeting on September 7, 2013, whereby it decided that transportation charges are to be adjusted by a maximum of 15%.
MyCC said it had reasonable grounds that the decision has infringed or is likely to infringe section 4(2)(a) of the Competition Act 2010, and PMLOA has been directed to refrain from deciding on any further increment or fixation, whether directly or indirectly, of transportation charges.
As for the 11 members of PMLOA, they are directed to refrain from implementing the PMLOA’s decision on behalf of its members, it said.
“The PMLOA, members of PMLOA and the relevant lorry enterprises were given seven working days to submit written representations from the date the notices were served against them,” it said.
Earlier on, the PMLOA had issued a statement that was published in the local papers on September 11, 2013, stating that PMLOA was unanimous in its decision to raise transportation charges by 15%. – September 20, 2013.
