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P-hailing service issues getting MyCC's attention

KUALA LUMPUR: Following the recent public outcry on issues relating to the services of food delivery platform companies, the Malaysia Competition Commission (MyCC) has actively engaged with relevant stakeholders to obtain further information on the matter.

It also looks into the imposition of exorbitant commission fees by such companies and the price of food and beverages on these platforms.

MyCC chief executive officer Iskandar Ismail said MyCC closely monitored and assessed the situation as to whether the conducts of certain food delivery platform companies is in contravention of the Competition Act 2010 or not.

"MyCC along with the Domestic Trade and Consumer Affairs Ministry have met relevant parties including the food and beverages (F&B) and retail industry players to understand the issues raised by them.

"Based on the series of meetings held, we have identified several concerns and challenges in the industry, in relation to not only competition, but also consumerism. The way forward for us is to actively engage with the food delivery platform providers." he said.

In this regard, Iskandar said MyCC took a closer look at every angle from the perspective of the Competition Act 2010, particularly on the conduct of these food delivery platform companies towards F&B industry players, riders and consumers and whether it raises any competition concern.

He further said that all options were being considered in approaching these issues, including invoking the enforcement powers under the Competition Act 2010 and working closely with the ministry to attain comprehensive solutions to all issues raised by the relevant industry players.

Section 4 and Section 10 of Competition Act 2010 clearly prohibits enterprises from entering into any anti-competitive agreement and abusing their dominant position in the market, respectively.

Action can also be taken against a group of major players which abuse their dominant positions collectively.

Consumers and businesses can channel their complaint(s) related to the misconduct of the p-hailing services by lodging the complaints via MyCC website or address its complaints to complaints@mycc.gov.my or via Whatsapp at +6019 215 2273.

The complainant(s) is advised to give full account of their complaint together with the relevant evidence.

The New Straits Times had reported that food delivery operators were allegedly exploiting grey areas in the gig economy to solicit profit.

Fed up with the exorbitant fees charged by food delivery platforms, lawyer Ng Kian Nam was reported taking the matter to the Tribunal for Consumer Claims.

He said due to the commission fees imposed on F&B, businesses like eateries or food outlets had to resort to cutting corners to stay afloat, thus compromising the quality of food and putting consumers on the losing end.

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