MyCC looking into alleged cartel-like price increase

The Malaysia Competition Commission (MyCC) has identified an alleged cartel-like price increase of ice and stationary supplies.

In view of this, a preliminary investigation has been carried out concerning the alleged hike following several advertisements in local papers on December 24th by several ice manufacturers.

According to the advertisement, the price for edible tube ice will increase by 50 sen per bag and RM2.50 per block of ice beginning January 2014.

In a statement MyCC said, the Federation of Stationers and Booksellers Association of Malaysia had also announced an increase for stationary supplies.

This following an announcement by the association’s president published on December 27th which will take effect in the first quarter of 2014.

The Domestic Trade, Co-operative and Consumerism Minister had also urged the MyCC to look into any possible cartel behavior by The Federation of Stationers and Booksellers Association of Malaysia.

“Price hikes by themselves are not anti-competitive in nature but if the hikes were a result of a collusion through price fixing agreements by associations or groups of sellers, suppliers or manufacturers, this is considered as a contravention of Section 4 of the Competition Act 2010," said MyCC Chief Executive Officer, Shila Dorai Raj.

She added that while stern warnings over the past few months to stop colluding and fixing prices had been ignored by several associations, MyCC is obliged to step in and take action.

She said if enterprises by themselves want to increase prices due to several cost push factors they should do so independently.

Associations or groups colluding to decide on price increases are conducting serious infringements of the law, where maximum penalties of up to 10% of turnover can be imposed if found guilty.

She said while the MyCC has no role in policing price hikes, if the price hikes were in contravention of Section 4 of the Competition Act 2010, it is under the Commission’s purview to act upon the infringement.

Section 4 of the Competition Act 2010 prohibits enterprises, including associations, from fixing, directly or indirectly a purchase or selling price or any other trading conditions for goods and services.

- Astro Awani