For all the MYEG investors, this is one piece of news that you would need to know about. Well it has yet to be finalized but chances of it happening would definitely be high too. Just beware and cautious on your investments as this would definitely have an impact on the share price.
Read the article below or click on the link for the full article from The Sun.
PETALING JAYA: The Malaysia Competition Commission (MyCC) has proposed imposing a financial penalty of RM307,200 against MyEG Services Bhd for infringing Section 10 of the Competition Act 2010.
In a statement yesterday, MyCC said MyEG had abused its dominant position in the provision and management of online foreign workers permit renewal applications, by applying different conditions to equivalent transactions with other trading parties to the extent that it may harm competition.
The MyCC said the probe, which was based on the complaints filed by numerous parties, found that MyEG had harmed the level of competition in the selling of mandatory insurance policies for online foreign workers permit renewal applications as MyEG is also competing against other insurance companies in the market.
MyEG’s wholly-owned subsidiary MyEG Commerce Sdn Bhd is an agent of RHB Insurance Bhd, which sells the mandatory insurances.
Besides the financial penalty of RM307,200, there will be an additional penalty of RM15,000 for each day in the event MyEG fails to comply with a few remedial actions, including the termination of the existing agency agreements relating to the mandatory insurances and no entry into similar agency agreements – providing an efficient gateway to all insurance companies selling the mandatory insurances, which will allow them to compete at the same level.
MyCC is allowed by law to impose a financial penalty of up to 10% of the worldwide turnover of each enterprise and any remedial action.
In a reply to a Bursa Malaysia query late yesterday, MyEG clarified that at this juncture, the proposed decisions are not final.
“The management will review the proposed decisions with our external legal counsel and will submit a written representation and will make an oral representation to MyCC within the specified period of time to defend against the allegations made by MyCC,” it said.
