MyEG Penalized Competition Act

My E.G. Services Berhad (MyEG) has flouted the competition law here and is therefore liable for a RM307,200 fine. Under a proposed decision issued by the Malaysia Competition Commis­sion (MyCC) yesterday, MyEG will also be liable to pay an additional pe­­nalty of RM15,000 per day should it fail to comply with two remedial actions.

MyCC said MyEG had abused its dominant position in the provision and management of online Foreign Workers Permit Renewal (PLKS) applications, by applying different conditions to equivalent transactions with other trading parties to the extent that might harm competition.


“Its wholly-owned subsidiary MyEG Commerce Sdn Bhd is to terminate existing agency agreements relating to the mandatory insurances and shall not enter into similar deals.

MyEG should provide an efficient gateway to all insurance companies selling the mandatory insurances which allow them to compete at the same level,” the commission said in a statement yesterday.


An investigation was carried out under Section 10 of the Competition Act 2010 after complaints were filed by numerous parties.


The commission found that the MyEG had harmed the level of competition in the selling of mandatory insurance policies.


The policies in question were Foreign Workers Insurance Guaran­tee, Foreign Workers Hospitalisation and Surgical Scheme and Foreign Workers Compensation Scheme.


“Investigations showed MyEG is abusing its dominant position in the provision and management of the online Foreign Workers Permit Renewal applications by way of competing against other insurance companies in the market.


“Under the law, the commission is allowed to impose a financial penalty of up to 10% of the worldwide turnover of each enterprise and any remedial action,” it said.


MyEG Commerce is an agent of the RHB Insurance Berhad which sells the mandatory insurances.
The proposed decision is a written notice setting out the facts on which the commission makes its assessment and reasons.


The enterprises concerned have 30 days from the date of receipt of the proposed decision to make their re­­pre­sentations. The commission will then make a final decision.


The Competition Act was first set up in 2010 and came into force on Jan 1, 2012. It seeks to promote and protect the process of competition and prohibit anti-competitive agreements between enterprises and abuse by dominant players.