The Malaysia Competition Commission (MyCC) has announced that it has received four applications for exemption from the Competition Act 2010. The applicants are Nestle Products, the Life Insurance Association of Malaysia, and the Association of Malaysian Hauliers; the Malaysia Shipowners Association, Shipping Association of Malaysia and Federation of Malaysian Port Operators Council submitted a joint application.
To qualify for exemptions, the applicant must show that it meets all prongs of a four-factor test:
1) There are significant identifiable technological, efficiency or social benefits directly arising from the agreement;
2) The benefits could not reasonably have been provided by the parties to the agreement without the agreement having the effect of preventing, restricting or distorting competition;
3) The detrimental effect of the agreement on competition is proportionate to the benefits provided; and
4) The agreement does not allow the enterprise concerned to eliminate competition completely in respect of a substantial part of the goods or services.
Each application requires an RM 50,000 fee. Furthermore, for each year an applicant is exempted, it will be charged a fee (RM 10,000 for individual applicants, RM 20,000 for block applicants). According to MyCC chief executive officer Shila Dorai Raj, the fees go toward the costs of reviewing applications. Additionally, they also act to deter companies from having MyCC conduct the assessments, so that they will shoulder the task themselves.
Full content: The Star
Related content: An Overview of Competition Law in Southeast Asia
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