Sibu Enterprises Imposed With Financial Penalty For Price Fixing

KUALA LUMPUR: The Malaysia Competition Commission (MyCC) yesterday issued a proposed decision in relation to a price fixing agreement between 24 enterprises which are members of the Sibu Confectionery and Bakery Association (SCBA).

The 24 enterprises were found infringing Section 4(2) of the Competition Act after they were discovered agreeing to increase the prices of confectionery and bakery products by between 10 and 15 per cent in Sibu.

To remedy this infringement, MyCC proposed to impose a total financial penalty of RM439,000 on the enterprises and directed the enterprises to take steps to ensure that they stop the infringement and comply with the Act.

“Price fixing is a major concern of the MyCC as the restriction of competition is obvious in any price fixing cases.

“Such an agreement, conducted by these enterprises of different sizes, provides the parties the opportunity to impose higher prices to maximise profitability without any competition,” MyCC chief executive officer Shila Dorai Raj said in a statement.

She said the proposed decision should serve as a deterrent to other associations of enterprises and groups of enterprises which engage in price fixing agreements.

She noted that this practice should be stopped in order to ensure that the Malaysian economy worked well for the Malaysian taxpayers.

MyCC would continue to monitor and investigate such practices and take enforcement actions, however, enterprises are free to set their own prices independently without discussing with their competitors. — Bernama