MYCC Discovers Truck Owners' Cartel

In a case that makes clear the vital need for continued education and compliance programs in Malaysia, the Malaysian Competition Commission "discovered" that the Pan-Malaysia Truck Owners Association had decided that its members would increase their transportation charges by 15%. The Association had previously issued a statement to local papers to the effect that its members had unanimously decided to raise their transportation charges in unison.

Not surprisingly, the Commission determined that this agreement would be in breach of Malaysia's cartel prohibitions and issued orders requiring the Association and its members to refrain from implementing the cartel agreement and amend the Association's constitution to remove any provision concerning discussion and determination of chargeable prices. In a sign that the Commission recognizes the continued need to build awareness among the local business community, it did not impose penalties in this case.