House of Representatives passes statutory amendments to Competition Act 2010: Key changes under Competition (Amendment) Bill 2026 and Competition Commission (Amendment) Bill 2026

9 July 2026

On 6 July 2026, the House of Representatives passed the Competition (Amendment) Bill 2026 (“Competition Bill”) and the Competition Commission (Amendment) Bill 2026 (“Commission Bill”) (collectively, “Bills”). The Bills seek to amend the Competition Act 2010 (“Competition Act”) and the Competition Commission Act 2010. At the time of writing, the Bills have yet to be passed by the Senate and receive Royal Assent. Once in force, they will introduce the most significant reforms to Malaysia’s competition law framework since the Competition Act came into force.

The statutory amendments under the Bills include substantive changes to the prohibition against anti-competitive agreements, enhanced investigative and enforcement powers, a new settlement regime, expanded rights of appeal, and reforms to the powers, governance and administration of the Malaysia Competition Commission (“MyCC”). While the Competition Bill focuses primarily on revising the substantive and procedural framework governing competition law infringements and strengthening the MyCC’s enforcement toolkit, the Commission Bill complements these reforms by enhancing the MyCC’s institutional powers, governance arrangements and operational flexibility.

Notably, despite the scope of the reforms, the Bills do not introduce a merger control regime. Therefore, the review of mergers and acquisitions activities on competition grounds remains outside the ambit of the Competition Act. Given the wider institutional and enforcement powers being conferred on the MyCC under this round of reforms, enterprises should remain vigilant in carrying out their businesses and reassess their practices where necessary to ensure compliance with the Competition Act.

This article sets out the key changes under the Bills.

Removal of distinction between horizontal and vertical agreements from prohibition against anti-competitive agreements

The Competition Bill seeks to make several significant amendments to the current Competition Act framework, including the removal of the distinction between horizontal and vertical agreements from the prohibition against anti-competitive agreements.

Currently, section 4 of the Competition Act distinguishes between:

• horizontal agreements between competitors, which may be deemed to have the object of significantly preventing, restricting, or distorting competition; and
• vertical agreements between parties operating at different levels of the supply chain, which are generally assessed under a different analytical framework.

The Competition Bill seeks to remove these concepts and apply the prohibition more broadly to any agreements that have the object or effect of significantly preventing, restricting, or distorting competition in any market.

From an enforcement perspective, while the precise impact of the amendments will depend on how the courts and the MyCC interpret the revised provisions, these changes will provide the MyCC with greater flexibility in assessing commercial arrangements without first having to characterise them as being horizontal or vertical in nature.

The removal of the horizontal and vertical distinction will also have significant implications for enterprises. Under the Competition Bill, many commercial arrangements that have traditionally been treated as vertical agreements, such as exclusive distribution arrangements, resale restrictions, selective distribution systems, supply exclusivity arrangements, and certain franchise agreements, would then fall under the “deeming provision” under section 4(2) of the Competition Act. Under the existing Competition Act regime, section 4(2) states that horizontal agreements which have the object of, among other things, fixing prices, sharing market or sources of supply or rigging bids, will be deemed as having the object of significantly preventing, restricting or distorting competition in the relevant market.

This may reduce the level of certainty for enterprises when structuring distribution and supply arrangements. It may also necessitate new or revised MyCC guidelines to clarify whether new thresholds or analytical frameworks will be introduced to replace the existing approach.

Enterprises should review their existing agreements and commercial practices to assess potential exposure under the revised framework and monitor whether new guidance from the MyCC is issued to address the treatment of these arrangements.

Introduction of a settlement mechanism

The Competition Bill seeks to introduce a formal settlement framework for infringements involving anti-competitive agreements and abuse of dominant position. Following the issuance of a proposed decision, the MyCC may offer a settlement to an enterprise under investigation, provided that the enterprise has admitted to liability for the infringement.

Expanded appeal rights

Under the current regime, decisions of the Competition Appeal Tribunal (“CAT”) are final. The Competition Bill seeks to introduce a right of appeal to the High Court for parties aggrieved by a decision of the CAT, including the MyCC itself. This amendment is expected to increase judicial oversight of competition law enforcement and may contribute to the further development of Malaysian competition law jurisprudence.

Higher financial exposure and expanded enforcement powers

The Competition Bill clarifies that enterprises that fail to pay penalties within the prescribed period may be subject to late payment charges. Complementing these amendments, the Commission Bill expressly empowers the MyCC to:

• impose financial penalties;
• impose late payment charges;
• impose fees, administrative charges, and other charges; and
• commence High Court proceedings to enforce directions, decisions, undertakings, and financial penalties.

Enhanced powers to conduct market reviews and obtain information

The Competition Bill significantly expands MyCC’s information-gathering powers. The MyCC will be empowered to require any person to provide information, particulars, or documents relevant to a market review. Government entities, including ministries, government departments, statutory bodies, and local authorities, may also be required to provide information requested by the MyCC. In addition, the MyCC may require any person to furnish information, documents, copies of documents, or witness evidence that is relevant to the exercise of its functions and powers.

Other notable amendments

In addition to the changes relating to anti-competitive agreements, the Competition Bill proposes several other amendments, including:

• an expansion of the scope of application of the Competition Act from “commercial activities” to “commercial or economic activities”;
• enhancing the existing leniency regime;
• strengthening confidentiality and whistle-blower protections;
• expanding the MyCC’s powers to impose interim measures where urgent action is required to prevent serious and irreparable harm; and
• strengthening the MyCC’s investigative and enforcement powers, including new powers to conduct preliminary inquiries before commencing formal investigations.

Practical implications for enterprises

If passed in its current form, the amendments would require enterprises to revisit their competition law compliance strategies and contractual arrangements. In particular, enterprises should consider taking the following steps:

• review distribution, supply, franchise, and other commercial agreements that are currently analysed primarily as vertical arrangements;
• reassess competition law risk based on the competitive effects of an agreement;
• update internal competition compliance policies and training programmes;
• monitor future guidance issued by the MyCC regarding the application of the amended provisions; and
• prepare for potentially more active and flexible enforcement by the MyCC.

Further information

This article has been prepared with the assistance of Associates Siah An Gel and Mohamad Syafiq bin Mohamad Tazri.