10 June 2021
On 3 May 2021, the Court of Appeal dismissed MyEG Commerce Sdn. Bhd.’s and MyEG Services Sdn. Bhd.’s (collectively, “MyEG”) appeal for the merits of MyEG’s appeal to be heard, and upheld the penalty of RM9.64 million originally imposed on MyEG by the Malaysia Competition Commission (“MyCC”).
MyEG’s appeal stems from the High Court’s dismissal of MyEG’s application for a judicial review in respect of the Competition Appeal’s Tribunal’s (“CAT”) decision in 2019. Previously, the CAT had upheld the MyCC’s decision in finding that MyEG had abused its dominant position by imposing different conditions to equivalent transactions in the purchase of mandatory insurances for the renewal of permits for foreign workers, and therefore infringed the Competition Act 2010 (“Competition Act”).
Justice Datuk Mohamad Zabidin Mohd Diah, who led the three-member Court of Appeal bench in upholding the High Court decision, held there was no error and misdirection that warranted the appellate court’s intervention in this case. Consequently, MyEG was ordered to pay costs of RM20,000 to the MyCC.
By way of background, MyEG Services Sdn. Bhd. implements and provides electronic government services, while MyEG Commerce Sdn. Bhd., its wholly owned subsidiary, principally engages in providing auto insurance intermediary services and other related ancillary services. Both companies are treated as a single enterprise as defined under section 2 of the Competition Act. MyEG has, via an announcement on Bursa Malaysia, indicated that it may file an appeal the Court of Appeal’s decision to the Federal Court.