Stronger law gives MyCC edge against cartels [WATCH]

Recent changes to Malaysia's Competition Act 2010 have bolstered the powers and capabilities of the Competition Commission of Malaysia (MyCC) in tackling cartels, bid rigging, and price-fixing schemes. MyCC chairman Tan Sri Idrus Harun highlighted the amendments, citing expanded investigative authority, a new settlement framework, and a clear appellate process as crucial to stay ahead of evolving market tactics and sophisticated cartel operations.

He emphasized that the 34-clause amendment must remain flexible to adapt to contemporary challenges. MyCC's chairman stressed that legislation should not remain static as ambiguities and loopholes exploited by perpetrators are often discovered over time. The amendments come in the wake of the Dewan Rakyat's passage of the Competition Commission (Amendment) Bill 2026, which broadens MyCC's role beyond investigating unfair practices to include industry analysis and policy recommendations to ensure a fair and competitive market environment.

The amendments close a legal loophole that allowed trade associations to evade liability by arguing they were not enterprises directly involved in commercial activity. The expanded definitions of agreement and enterprise now enable MyCC to investigate and hold trade associations accountable for facilitating or enabling anti-competitive conduct among their members.

MyCC also gains mandatory powers under the new Section 11A to collect data and documents from commercial entities and statutory bodies during market reviews. This soft enforcement approach allows MyCC to understand market operations and identify structural or regulatory issues that impact competition. The new law introduces a settlement mechanism under Section 38A, offering enterprises up to a 40 percent reduction in financial penalties for admitting liability after a proposed decision.

This fast-track procedure encourages early resolution and ensures consumers benefit from anti-competitive market behavior being addressed promptly. Informant protection and financial rewards for whistleblowers are also embedded in Sections 64A and 64B, incentivizing the exposure of cartels and bid-rigging schemes. The ultimate aim is to safeguard consumer interests and promote healthy economic development.

Companies found guilty of anti-competitive conduct can now face fines up to 10 percent of their global turnover during the infringement period. Since August 17, MyCC has imposed RM667.3 million in total financial penalties across 16 final infringement decisions involving 270 companies. These penalties have been issued across various sectors, including transportation, agriculture, food and beverage, logistics, education, and construction.

MyCC has initiated 13 investigations, with 12 focusing on bid-rigging schemes and one on price-fixing. Currently, over 500 companies linked to public and private tenders valued at more than RM4.34 billion are under investigation.