- MyCC issues second abuse of dominance decision, in first finding on exclusive dealing
MyCC has fined Dagang Net Technologies Sdn. Bhd. RM 10.3 million for abusing its dominant position by imposing software providers’ exclusivity.
This update was published on 13 April 2021, as part of our quarterly newsletter, Asia Pacific Competition Highlights. Click here to access the full report, which covers the most notable antitrust developments across 10 Asia Pacific jurisdictions.
MyCC issues second abuse of dominance decision, in first finding on exclusive dealing
MyCC has fined Dagang Net Technologies Sdn. Bhd. RM 10.3 million (approx. USD 2.4 million) for abusing its dominant position by imposing software providers’ exclusivity.
In February 2021, the Malaysian competition regulator (“MyCC”) issued the final infringement decision against Dagang Net Technologies Sdn. Bhd. (“DagangNet”), an online trade facilitation service provider for an abuse of its dominant position in the market to provide trade facilitation services in Malaysia. MyCC found DagangNet abused its dominant position by imposing an exclusivity clause on software providers from October 2015 to November 2017.
Notwithstanding that DagangNet had ceased its abusive conduct by removing the exclusivity clause in the relevant contracts, MyCC took the view that:
- it was a matter of public interest for MyCC to determine the abusive conduct by DagangNet; and
- there is a real risk of resumption on the part of DagangNet.
This decision represents MyCC’s first infringement decision which involves exclusive dealing and may signal an increased focus on this business behaviour.
Similar to MyCC’s last infringement decision, MyCC granted a reduction of 20% to the imposed fine because of the impact of the Covid-19 pandemic, bringing the total fine down to RM 10.3 million (approx. USD 2.4 million) from RM 12.9 million (approx. USD 3 million). In addition to the fine, MyCC also directed DagangNet to (i) cease and desist, and to refrain from taking any measure which has the same object or effect of the exclusivity clause that may harm competition in the relevant market; and (ii) enroll its directors and senior management executives in a competition law compliance program, with monthly progress reporting back to MyCC