Malaysia Competition Commission emphasises Competition Act 2010 does not prohibit entities from holding a dominant position in the relevant market

30 March 2023

On 28 January 2023, the Malaysia Competition Commission (“MyCC”) issued a public statement to respond to certain allegations made by the Federation of Malaysian Consumers Association in respect of the monopolistic nature of the business of Touch 'n Go Sdn. Bhd. and TnG Digital (collectively, “TnG”).

In the public statement, the MyCC emphasised the fact that the Competition Act 2010 (“CA”) does not prohibit entities from holding a dominant position in the relevant market or from being a monopoly, and that there would only be an infringement of the CA if the dominant enterprise or monopoly abuses its position in the relevant market. In particular, the MyCC recognises that TnG gained its monopoly position naturally in providing its services in respect of the Malaysian toll payment systems as a result of the Government of Malaysia’s decision to abolish cash payments for tolls nationwide to ease traffic congestion at toll booths.

Insofar as the issues between TnG and consumers are concerned, the MyCC has clarified that such issues are beyond the MyCC’s jurisdiction, as TnG is an electronic money service provider regulated by Bank Negara Malaysia and matters relating to toll concessionaires are administered by the Malaysian Highway Authority.