Before the internet paying traffic summonses or getting a driver license renewed required the public to take drive to the nearest Government road transport centre or JPJ, wait for hours and hope the documents are all in tact. People event took off from office to renew their licenses! Things changed rapidly with the advent of the internet, JPJ went online and service provider MyEG sought to ease the process with its robust online payment platform.

The digital service provider expanded its service from license renewal, traffic bills, DBKL summons to immigration services in assisting immigrant workers processing temporary work permits. It is also worth noting Home Ministry reports there are over 1.7 million foreign workers in the country and they all require the Mandotory Insurance for Online Pas Lawatan (PKLS). Renewal of this insurance has been given to MyEG to undertake which the company works together with various insurance company in the country to undertake.

But when the service provider signed an agreement with RHB Insurance for the renewal process and started changing its processing mechanics giving advantage for customers who used RHB instead of its competition, it raised alarm in the industry. MyEG had imposed different conditions to the equivalent transaction in the processing of PLKS and this is seen as illegal by the Malaysian Competition Commission.

At a recent hearing, the Competition Appeal Tribunal dismissed the appeal of My E.G. Services and found the public listed company had infringed the Competition Act 2010 and will be fined for its activity. Presided by Tan Sri Haidar Bin Mohd Nor, he viewed that MyEG had as accused abused their dominant position and find no reasons to interfere with the agency’s decision.  The company has been ordered to rectify its processing mechanics and allow other competitors to compete at the same level within 60 days and pay a total fine of RM6.4 million.

MyCC’s Chief Executive Officer, Dato’ Abu Samah Shabudin welcomed the decision of CAT decision and states that “it has been MyCC’s objective from the beginning to ensure that companies in a dominant position do not abuse their position as this could have a very negative impact on consumers and the national economy as a whole.”

Apart from cases that are currently under MyCC’s investigation, a judicial review of the CAT’S decision is pending in the case between MyCC against Malaysian Airline System Berhad (‘MAS’) and AirAsia Berhad (‘AirAsia’).