After a few years of investigations, the Malaysia Competition Commission (MyCC) finally issued its final decision against Persatuan Insurans Am Malaysia (in English, the General Insurance Association of Malaysia) (PIAM) and its 22 members.
In its decision, the MyCC found PIAM and its 22 members contravened section 4 of the Competition Act 2020 by entering into an anti-competitive agreement on the application of trade discounts on parts prices and hourly labour rates for motor vehicle repairs by workshops under the PIAM Approved Repairers Scheme (PARS). In addition to financial penalties, the MyCC also imposed cease and desist orders on the parties.
The MyCC imposed the decision notwithstanding the fact that the arrangement was put in place through the facilitation and direction of Bank Negara Malaysia (the Central Bank of Malaysia) to the general insurers, and notwithstanding the fact that the parties concerned apparently hired some of the Big 4 or Big 10 law firms in town or those firms with paid-for third party rankings.
The latest decision is another caution to businesses when dealing with government agencies. Do seek legal advice before taking any instructions or directions from government agencies.
If you wish to know more about ETCoLaw’s Competition Law & Antitrust Practice, please go to Competition Law, Antitrust & Trade.
Our Dr. Vince is a pioneer in Competition Law in Malaysia, having published a number of articles on Competition Law in leading international journals. To view his articles, go to PUBLICATIONS.
1 October 2020
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