The Court of Appeal delivered a decision on 27 April 2021 allowing the appeals by Malaysian Airline System Berhad (“MAS
”) and AirAsia Berhad (“AirAsia
”) to set aside financial penalties of RM10 million each imposed by the Malaysia Competition Commission (“MyCC
”) on MAS and AirAsia for breach of the Competition Act 2010 (“the Act
”) by entering into a collaboration agreement on sharing markets in the air transport services in Malaysia.
Based on news reports1
, the grounds for the Court of Appeal’s decision are as follows
In light of the grounds set out in paragraphs 1 and 2, the ground set out in paragraph 3 may be an alternative ground of decision or be obiter dicta
By way of background, MyCC had imposed the fines on both airlines in 2014 after it found that both AirAsia and MAS breached the market sharing prohibition under Section 4(2) of the Act. On appeal by both airlines, CAT overturned MyCC's decision to impose the fines in 2016. Following that, MyCC then sought a judicial review of CAT’s decision which resulted in the fines being reimposed by the High Court in 2018.
A more detailed commentary will be published when the Court of Appeal’s grounds of judgment are available.
Alert by Sharon Chong (Partner), Tan Shi Wen (Partner) and Manshan Singh (Senior Associate) of the Competition Law Practice of Skrine.