insurance wm

The Malaysia Competition Commission (MyCC) says it is investigating a number of general insurance companies as well as the companies’ association under the Competition Act 2010. They are being investigated for their alleged involvement in anti-competition agreements in relation to the motor vehicle repair industry in the country, Bernama reports.

The investigation involves commercial activities between vehicle repair workshops and general insurance companies, and is centred on trade discounts on the pricing of spare parts for certain vehicle makes as well as the labour rate being paid to the workshops, MyCC CEO Datuk Abu Samah Shabudin said via a statement.

The commission said that under the Competition Act 2010, agreements considered as anti-competition include agreements on fixing prices in the market where the industries compete.

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“Chapter one of MyCC’s Guidelines on Prohibition states that anti-competition agreements covered the fixing of prices including the fixing of a particular price or that of price elements such as the fixing of discounts, the percentage in price increase or a minimum/maximum price between competitors,” the statement said.

Abu Samah said the MyCC – which is an independent body responsible for enforcing the Competition Act – will continue to monitor the activities of associations, including professional bodies, to ensure that all related parties were not involved in activities that could prevent, prohibit or interfere in competition within the marketplace.

Any infringement under the Act may attract a financial penalty of not more than 10% of a company’s total revenue throughout the period of violation, he added.