MyCC to determine if agreements exist in the transport sector – Nanta

KUALA LUMPUR (October 5): The Malaysian Competition Commission (MyCC) will invoke its enforcement power to determine whether there are any cartels formed in the port logistics ecosystem and motor vehicle warranty, said the Minister of Domestic Trade and Consumer Affairs, Datuk Seri Alexander Nanta Linggi.

He said MyCC would look into possible anti-competitive behavior regarding city side charges, ocean freight charges, boarding charges (DGC) and fuel adjustment factor, as recommended in MyCC’s latest market review in under the Competition Act 2010 for certain transport sectors released Tuesday.

“The concession agreement for port operators may also be subject to review to achieve a policy change to ensure competition in the relevant market,” he told media after the launch of the market review Tuesday.

Nanta said there was also a need to rectify regulatory and market-determined issues regarding customs procedure, regulatory framework, standardization and licensing of dockside and dockside actors, as well as to strengthen the control of mergers and acquisitions.

At the same time, he said MyCC would also exercise its power to determine whether carmakers’ transactions in the repair industry raise competition concerns.

“MyCC in its market research also recommended the introduction of the lemon law and other improvements to the warranty process to protect the interests of vehicle owners,” he added.

Meanwhile, MyCC Managing Director Iskandar Ismail said there is cartel-like behavior and possible pricing when introducing DGC and exclusive deals between ocean liners and depot operators. .

“The behavior appears to exist when depot operators act together, through instructions from their association, to agree and price the DGC (RM5) when it is introduced.

“Although each depot operates in different geographies and different twenty-foot equivalent (TEU) volumes and capacities, it appears that the trend of DGC increments has been similar among several depot operators,” he said.

In the meantime, Iskandar noted that in reviewing the warranty of motor vehicles, MyCC has found that warranty restrictions imposed by car manufacturers can potentially prevent or restrict competition in the repair industry. and automotive maintenance.

“The exclusion clauses of the guarantee could potentially lead to a market closure only to franchised workshops of the network of automobile manufacturers.

“We have also discovered problems with the agreements between car manufacturers and insurance companies that have led to the foreclosure of the car accident repair market,” he said.

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