30 March 2021

On 26 February 2021, the Malaysia Competition Commission (“MyCC”) imposed a financial penalty totalling RM10.3 million against Dagang Net Technologies (“Dagang Net”) for abusing its dominant position by engaging in exclusive dealing.

Dagang Net is the sole provider and operator of the platform that provides trade facilitation services under the National Single Window (“NSW”), an electronic-based ecosystem that enables customs related documents and transactions to be transferred electronically between the trading communities and regulatory authorities in Malaysia.

The MyCC found that Dagang Net had abused its dominant position by imposing exclusivity clauses on software providers of the NSW from October 2015 to November 2017. The exclusive dealing had a harmful effect on competition as it leaves its competitors at a competitive disadvantage when entering the new, upcoming NSW system.