This is an interesting case where MyCC for the Malaysian Competition Act 2010 has audited and decided that MyEG has in fact abused their dominant position vis-à-vis their agency to distribute Foreign Workers’ Insurances, i.e. Insurance Bond.
A fine of RM300,000 plus, plus depending on the number of days that MyEG failed to remedy the situation. One thing for sure, this decision means MyEG is not allowed to sell any of the Insurance Bond, whether offline or online.
You can catch a fast read her…. this is compiled from the NST today.
|MYCC issues proposed decision on MYEG
6 October 2015 @ 7:12 PM
KUALA LUMPUR: The Malaysia Competition Commission (MyCC) has issued a Proposed Decision on My E.G. Services Bhd (MyEG) for abusing its dominant position.
In a statement today, MyCC said MyEG was found to have infringed Section 10 of the Competition Act 2010 by abusing its domination position and management of online Foreign Workers Permit Renewal applications.
“They had applied different conditions to equivalent transactions with other trading parties to the extent that may harm competition.
“The investigation found that MyEG has harmed the level of competition in the selling of mandatory insurance policies for online permit renewal applications as it is also competing against other insurance companies in the market,” it said.
MyEG’s wholly-owned unit, MyEG Commerce Sdn Bhd, is an agent of RHB Insurance Bhd which sells the mandatory insurance policies.
The insurance policies are foreign workers insurance guarantee, foreign workers hospitalisation and surgical scheme and foreign workers compensation.
The commission is allowed under the law to impose a financial penalty of up to 10 per cent of the worldwide turnover of each enterprise and any remedial action.
MyCC said it proposed to impose a financial penalty of RM307,200 and an additional penalty of RM15,000 for each day the MyEG failed to comply with the remedial actions.
“The remedial actions are that MyEG Commerce is to terminate the existing agency agreements relating to the mandatory insurance policies and shall not enter into similar nature of agency agreements and the MyEG to provide an efficient gateway to all insurance companies selling the mandatory insurances which allow them to compete at the same level,” it said. – BERNAMA