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Malaysia – Proposed Interim Measures Issued To Pan-Malaysia Lorry Owners Association (“PMLOA”).

9 December, 2013

 
 

On 20 September 2013, the MyCC issued a proposed interim measures against the PMLOA, its members and related lorry enterprises (“Parties”) on a probable infringement of the Competition Act 2010, whereby the Parties had agreed to an increase of transportation charges by 15%. The MyCC had stated that such interim measures were necessary to prevent serious and irreparable economic damage and to protect the public interest. The interim measures required the Parties to first, suspend from and desist from acting in accordance with, the decision by the PMLOA at its committee meeting on 7 September 2013 to increase transportation charges by a maximum of 15%. Second, the PMLOA was directed to refrain from deciding, any further increment or fixation, whether directly or indirectly, on such transportation charges.

 

Subsequently on 4 October 2013, the PMLOA made an announcement to rescind its decision for its members to increase transportation charges to 15%. The PMLOA’s actions were looked upon favourably by the MyCC in a statement released on 7 October 2013. On 23 October 2013, the MyCC issued its final directions to the Parties to (a) refrain from entering into any form of communications or to facilitate any communications concerning pricing for services provided by lorry enterprises; (b) amend and remove from PMLOA’s and its members’ constitutions any provision concerning any discussion and determination of any chargeable prices; and (c) to submit the amended constitution within 60 days from 23 October 2013. Further, the MyCC stated that it was also investigating four other instances where there were allegations of price-fixing by associations and enterprises.

 

 

For further information, please contact:

 

Kuok Yew Chen, Partner, Christopher & Lee Ong
yew.chen.kuok@christopherleeong.com

 

Yon See Ting, Partner, Christopher & Lee Ong
see.ting.yon@christopherleeong.com

 
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