Competition Appeal Tribunal issued grounds of decision on Dagang Net’s appeal against MyCC

27 February 2024

On 18 December 2023, the Competition Appeal Tribunal ("CAT") issued its grounds of decision on Dagang Net Technologies Sdn. Bhd.’s appeal against the Malaysia Competition Commission's ("MyCC") decision.

For background, MyCC had fined Dagang Net Technologies Sdn. Bhd. RM10,302,475.98 (approx. S$2,944,117.11) for abusing its dominant position through an exclusivity clause which prohibits software suppliers from engaging with other service providers who may be appointed by the government under the Ubiquitous Customs, an initiative to merge the National Single Window and Sistem Maklumat Kastam to facilitate trade services in Malaysia. The National Single Window provides an electronic platform for the transfer of customs-related documents and transactions between the trading communities, such as manufacturers, importers, exporters and freight forwarders, and the regulatory authorities in Malaysia. If the software suppliers refuse to sign the agreement containing the exclusivity clause, the trading communities, who are the software suppliers’ end users, will not be able to utilise the National Single Window system.

The CAT dismissed Dagang Net Technologies Sdn. Bhd.’s appeal.