KUALA LUMPUR: The Malaysia Competition Commission (MyCC) recently accepted undertakings in accordance with Section 43 of the Competition Act 2010 from Giga Shipping Sdn Bhd and Nexus Mega Carriers Sdn Bhd.
The undertakings are in relation to exclusive agreements between the two enterprises with vehicle manufacturers, distributors and retailers.
Both enterprises are major providers of logistic and shipment services by sea for motor vehicles from ports in Peninsular Malaysia to ports in Sabah and Sarawak.
Following a complaint from a competitor, MyCC had been investigating suspected infringements of Sections 4(1) and 10(1) of the Act regarding the exclusive agreements.
MyCC is concerned that these agreements may have had the effects of foreclosing customers to competitors of the enterprises, which if established, will have the effect of preventing, restricting or distorting competition in the provision of the services, it said.
Both enterprises denied their pacts infringed the Act.
To address MyCC’s competition concerns, the enterprises undertook to stop, including any exclusivity clauses or clauses in their agreements, that may distort, restrict or prevent the provision of services to customers or potential customers.
“MyCC’s intervention in this matter has ensured that competitors in the logistic and shipment services have access to customers while customers will stand to gain from having more competing service providers to choose from,” said Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Hasan Malek.
The undertakings are available for public viewing on the MyCC website, www.mycc.gov.my. Bernama