New Straits Times, 20 September 2013
KUALA LUMPUR: The Malaysia Competition Commission ('MyCC’) today issued a proposed 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 on a probable infringement of Section 4(2)(a) of the Competition Act 2010 ('the Act’) by agreeing to fix an increase of transportation charges by 15 percent.
"This follows the warning given earlier by the MyCC to associations not to facilitate anti-competitive behavior, especially price fixing,” said MyCC CEO,Shila Dorai Raj.
“It serves to further reinforce the fact that the MyCC is seriously looking at evidence of anti-competitive behavior in the rampant price hikes following the recent rationalisation of fuel subsidy.”
"The Commission considers that it is 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.
The proposed Interim Measures states the following:
(a) PMLOA, members of PMLOA and the relevant lorry enterprises are directed to suspend the effect of, and desist from acting in accordance with,the decision made by the PMLOA during its 3rd Central Committee Meeting dated 7th September 2013 whereby it was decided that transportation charges are to be adjusted by a maximum of 15% ('transportation charge’).
MyCC has reasonable ground that the decision has infringed or is likely to infringe section 4(2)(a)of the Competition Act 2010; and
(b) PMLOA is hereby directed to refrain from deciding on any further increment or fixation, whether directly or indirectly, the transportation charge.
As for the 11 members of PMLOA, they are directed to refrain from implementing the PMLOA’s decision on behalf of its members.
As for the relevant lorry enterprises, they are directed to refrain from implementing the abovementioned decision by the PMLOA and its member enterprises as to any further increment or fixation, whether directly or indirectly, of thet ransportation charge.
The PMLOA, members of PMLOA and the relevant lorry enterprises were given 7 working days to submit written representations from the date the notices were served against them.
Earlier on, the PMLOA had issued a statement that was published in the local papers on 11th September 2013 stating that PMLOA was unanimous in its decision to raise transportation charges by 15 percent.
KUALA LUMPUR: The Malaysia Competition Commission ('MyCC’) today issued a proposed 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 on a probable infringement of Section 4(2)(a) of the Competition Act 2010 ('the Act’) by agreeing to fix an increase of transportation charges by 15 percent.
"This follows the warning given earlier by the MyCC to associations not to facilitate anti-competitive behavior, especially price fixing,” said MyCC CEO,Shila Dorai Raj.
“It serves to further reinforce the fact that the MyCC is seriously looking at evidence of anti-competitive behavior in the rampant price hikes following the recent rationalisation of fuel subsidy.”
"The Commission considers that it is 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.
The proposed Interim Measures states the following:
(a) PMLOA, members of PMLOA and the relevant lorry enterprises are directed to suspend the effect of, and desist from acting in accordance with,the decision made by the PMLOA during its 3rd Central Committee Meeting dated 7th September 2013 whereby it was decided that transportation charges are to be adjusted by a maximum of 15% ('transportation charge’).
MyCC has reasonable ground that the decision has infringed or is likely to infringe section 4(2)(a)of the Competition Act 2010; and
(b) PMLOA is hereby directed to refrain from deciding on any further increment or fixation, whether directly or indirectly, the transportation charge.
As for the 11 members of PMLOA, they are directed to refrain from implementing the PMLOA’s decision on behalf of its members.
As for the relevant lorry enterprises, they are directed to refrain from implementing the abovementioned decision by the PMLOA and its member enterprises as to any further increment or fixation, whether directly or indirectly, of thet ransportation charge.
The PMLOA, members of PMLOA and the relevant lorry enterprises were given 7 working days to submit written representations from the date the notices were served against them.
Earlier on, the PMLOA had issued a statement that was published in the local papers on 11th September 2013 stating that PMLOA was unanimous in its decision to raise transportation charges by 15 percent.
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