Introduction

The Malaysia Competition Commission (MyCC) is an independent body established under the Competition Commission Act 2010 to enforce the Competition Act 2010. Its main role is to protect the competitive process for the benefit of businesses, consumers and the economy.

Tan Sri Dato’ Seri Siti Norma Yaakob was appointed as the Commission’s first chairman. She was a senior member of the Malaysian Judiciary and her last appointment before her retirement in January 2007 was that of Chief Judge of Malaya.

Commission’s Main Functions

The Competition Commission Act 2010 empowers the Commission to carry out functions such as to implement and enforce the provisions of the Competition Act 2010, issue guidelines in relation to the implementation and enforcement of the competition law, act as advocate for competition matters, carry out general studies in relation to issues connected with competition in the Malaysian economy or particular sectors of the Malaysian economy as well as inform and educate the public regarding the ways in which competition may benefit consumers and the economy of Malaysia.

Competition Act 2010

The Competition Act 2010 only came into force on 1 January 2012. The Act which aims to promote economic development and protect consumer interests applies to all business activities within and outside of Malaysia as long as the activities have an impact on competition in the domestic market. There are two prohibitions in the Act, anti-competitive practices and the abuse of dominant position. Prohibited anti-competitive practices relate to horizontal and vertical agreements between enterprises whereby such agreements have the object or effect of significantly preventing, restricting or distorting competition in any market for goods or services. An abuse of a dominant position by an enterprise, whether individually or together with other enterprises would include among others, imposing an unfair purchase or selling price, limiting or controlling production and tying or bundling activities.

“Implication of the Competition Act 2010 to Malaysian Businesses”

Previously, Malaysia did not have a general and comprehensive competition law that applies across all economic sectors. Existing competition laws and regulations in Malaysia have been implemented only in two specific sectors, which are the communications, and multimedia sector governed by the Communications and Multimedia Act 1998 and the energy sector governed by the Energy Commission Act 2001.

In general, the main thrust of the Competition Act is to promote a competitive market environment and provide a level playing field for all players in the market, which in the process will squash anti-competitive practices such as cartels and collusions. This law will apply to all businesses; government-linked companies as well as big, small or medium-sized companies.

Implications of the Competition Act 2010 for Malaysian businesses are:

From now on, every business and company should begin educating and informing their staff to comply with the provisions of the Act. Such companies should encourage an awareness programme for all staff members and warn them against getting involved in any act that may be anti-competitive in nature.

For more details, please visit www.mycc.gov.my.