Recent Competition Law Cases In Malaysia

Published date03 August 2021
Subject MatterAnti-trust/Competition Law, Insurance, Antitrust, EU Competition , Insurance Laws and Products
Law FirmAzmi & Associates
AuthorMr Amalina Aishah Mohd Anwar and Hanizah Binti Mohd Huzin


The Malaysia Competition Commission ('MyCC') has carried out many investigations and enforcements, some of which are of notable importance and should be of interest. Competition law in Malaysia prohibits any anti-competitive agreements such as price-fixing, bid-rigging, sharing market, and abuse of dominant position in any market for products or services. This is to promote healthy competition and fair trading and ultimately, to protect the interest of the consumers. The number of enforcement decisions made by MyCC has attracted a lot of attention from the public. In recent years, some of the decisions have been challenged in court. This article aims to discuss the main prohibitions and the decisions made by MyCC in order to gain a better understanding of the recent developments of competition law in Malaysia.

Main Prohibitions of Competition Act 2010

The main prohibitions of the Competition Act 2010 ('Act') are stipulated under Chapter 1 and Chapter 2 of Part II of the Act1.

Chapter 1 prohibition, which is provided under Sections 4(1) and 4(2) of the Act prohibits anti-competitive agreements (horizontal or vertical agreements) that have the object or effect of significantly preventing, restricting, or distorting competition in any market for goods or services in Malaysia.

Chapter 2 prohibition, on the other hand, which is provided under Section 10 of the Act prohibits any conduct by enterprises that amount to an abuse of dominant position in any market for goods or services in Malaysia. This may include imposing an unfair price or trading condition on customers, limiting or controlling the market access, or any predatory behaviour that can harm competition in the market.

Decisions Made by the Malaysia Competition Commission

Competition Commission v MAS-Air Asia

In 2014, MyCC had issued a proposed decision that Malaysia Airlines System Berhad ('MAS') and AirAsia Berhad ('AirAsia') had infringed section 4(1) and 4(2)(b) of the Act by entering into a collaboration agreement to share the market in air transportation services in Malaysia. MyCC imposed a financial penalty of RM10 million on both parties respectively.

Subsequently, in February 2016, the Competition Appeal Tribunal ('CAT') allowed the appeal by MAS and AirAsia and set aside MyCC's ruling on the ground that there was no infringement due to the failure of MyCC to identify the relevant market for the matter and to give any reason in identifying the object of the collaboration agreement...

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