MyCC investigates general insurers for price fixing

Posted on: 2016-10-21

KUALA LUMPUR (Oct 20): A number of general insurance companies, including its association, are being investigated by the Malaysian Competition Commission for alleged anti-competitive agreements in connection with the automobile repair industry in the country.

“The investigation involves commercial activities between workshops and general insurers in Malaysia, particularly on trade discounts on part prices for certain vehicle makes, as well as labour rate paid to the workshops,” said MyCC chief executive office Datuk Abu Samah Shahbudin in a statement today.

Under the Competition Act 2010, anti-competitive agreements include price fixing in the market in which the companies compete, said MyCC.

“MyCC’s ‘Guidelines on Chapter 1 Prohibition: Anti-competitive Agreements’ further provide that price fixing includes fixing the price itself or fixing an element of the price, such as fixing discount, setting a percentage price increase or setting the permitted range of prices between competitors,” it added.

The commission said it will continue to monitor activities of all trade associations, including professional bodies, to ensure these entities do not stifle competition or infringe any provisions under the act.

An infringement of the act would attract a penalty of not more than 10% of worldwide turnover of the company, over the infringement period, it added.


Source From: The Edge

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