KUCHING, Oct 13, 2014: The Malaysian Competition Commission (MyCC) has issued a total fine of RM439,000 to 24 members of the Sibu Confectionery and Bakery Association for fixing the prices of their products.
The total fine was issued on Sept 30 to the 24 after they were found to have taken part in the price fixing agreement, MyCC chairman Siti Norma Yaakob said in a statement today.
She also warned members of the Federation of the Malayan School Bus Operators' Association to independently decide of their bus fares and not fix bus fare structures together as such price fixing behaviour is against Section 4 of the Competition Act 2010.
Her warning follows the announcement by the federation secretary general Saad Mohamad on the new fare structure which appears to be in contravention of the Competition Act 2010 (the ‘Act’).
Section 4 of the Act prohibits enterprises, including associations, from fixing, directly or indirectly a purchase or selling price or any other trading conditions for goods and services.
“While price increases are not anti-competitive in nature, if the increases are a result of collusion through price fixing agreements by any associations or any groups of sellers, suppliers or manufacturers, such cartel-like activity is a serious contravention of the Act,” Siti Norma said
Following the decision by the Land Transport Commission to deregulate the bus fares, she said that school bus operators are to independently decide the fares based on their own individual estimation of operating costs, rather than having to subscribe to a fixed fare structure.
"If an enterprise is found guilty of infringing the Act, the MyCC may impose a financial penalty of up to 10% of the worldwide turnover of the enterprise over the period of the infringement, or impose any other direction that it considers appropriate to ensure future compliance by associations and business enterprises," she warned.
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