On 30 September 2024, the Malaysia Competition Commission (“MyCC”), issued a Proposed Decision against 81 enterprises, for their alleged involvement in a price-fixing agreement relating to the provision of Umrah travel services in Malaysia from 2023.¹ This conduct, if proven, would be deemed an infringement under section 4 of the Competition Act 2010.
 
The preliminary investigation by MyCC has provisionally found that these enterprises, members of a registered Malaysian association, reached an agreement to set floor prices for both economy and premium Umrah package services during meetings held in early 2023. Furthermore, the association is reported to have publicly announced the agreed prices to inform consumers. Of the 81 enterprises, 71 are licensed Umrah service providers, with the remaining 10 operating without licences.
 
MyCC has highlighted that at this juncture, the Proposed Decision is a provisional finding and it should not be assumed that the enterprises concerned have infringed the Competition Act 2010.
 
The enterprises concerned have been notified of the proposed penalties. They will be given the opportunity to submit their written representations to MyCC within 30 days of receiving the Proposed Decision and to present their oral representations to MyCC on a date to be determined later. MyCC will issue its final decision after taking into account the representations made by the enterprises together with the evidence obtained during the investigation.
 
This marks the third proposed decision issued by MyCC to date in 2024, reflecting MyCC's commitment to upholding competition law and promoting fair market practices in Malaysia. As the proceedings progress, it will be essential to closely monitor how MyCC evaluates the extent of collusion involved and the penalties that may be imposed. These developments could have significant implications for businesses operating in the country and serve as important guidance for practitioners.
 
Alert by Tan Shi Wen (Partner) and Lee Li Zhu (Associate) of the Competition Law Practice of Skrine.
 

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