The Global Economy in Turbulent Times

CHAPTER 105 Price Fixing, Market Sharing, and Collusion Are Illegal¹

Three words should take us out of the middle-income trap: Be more competitive. But that’s going to be tough despite the economic transformation already in train, because price fixing, market rigging, and collusion are so commonplace. With the coming into effect of the Competition Act (since June 10, 2010, and enforced on January 1, 2012), anticompetitive practices are now illegal! The act² is intended to promote and safeguard “the process of competition, thereby protecting consumers.” It states that because competition “encourages efficiency, innovation and entrepreneurship,” it will reward consumers with: (1) competitive (lower) prices; (2) improved quality of products and services; and (3) wider choices. That’s why the act serves “to prohibit anti-competitive conduct.”

To oversee the effective implementation and enforcement of the act, the Malaysia Competition Commission (MyCC) was established. MyCC is charged with investigating any anticompetitive practices and is also empowered to impose strong financial penalties. The act applies to all commercial activities in Malaysia and abroad that affect competition in the Malaysian marketplace. However, decisions by MyCC may be appealed to the Competition Appeal Tribunal, on which I have been appointed as a member. In addition, MyCC also: (1) advises government and public regulatory authorities on all aspects of competition; (2) advises government on the impact ...