Malaysia

Developing Framework

Competition Act 2010

Authority: Malaysia Competition Commission (MyCC) | Enforcement: Active | Enacted: January 2012

Overview

Malaysia's Competition Act 2010 came into force in January 2012, establishing a general cross-sector competition regime. The Act prohibits anti-competitive agreements (Chapter 1 Prohibition) and abuse of dominant position (Chapter 2 Prohibition). Notably, the Act does not include a merger control regime. The MyCC has been increasingly active in enforcement, pursuing cartel conduct and abuse of dominance in sectors such as poultry, automotive, and logistics. The absence of merger control remains a significant gap. Sector-specific competition rules apply in communications and media (under the Communications and Multimedia Act 1998) and aviation and energy.

14-Topic Competition Coverage

Competition Authority

Fully Addressed

The Malaysia Competition Commission (MyCC) investigates and decides on competition infringements. Appeals are heard by the Competition Appeal Tribunal.

Anti-Competitive Agreements (Horizontal)

Fully Addressed

Section 4 prohibits agreements that significantly prevent, restrict, or distort competition. Price-fixing, market sharing, output limitation, and bid-rigging are considered hard-core restrictions.

Anti-Competitive Agreements (Vertical)

Partially Addressed

Vertical agreements are covered by Section 4 but are generally assessed under a less stringent effects-based approach. MyCC guidelines provide some safe harbour for non-hard-core vertical restraints.

Abuse of Dominance

Fully Addressed

Section 10 prohibits an enterprise from abusing its dominant position, including predatory pricing, refusal to supply, tying, and discriminatory treatment.

Merger Control

Not Addressed

There is no general merger control regime under the Competition Act 2010. Sector-specific merger controls exist in aviation and communications.

Leniency Programme

Fully Addressed

MyCC operates a leniency programme granting up to 100% reduction in financial penalties for the first applicant and reduced penalties for subsequent applicants in cartel cases.

Settlement & Commitment

Partially Addressed

MyCC may accept undertakings from enterprises to address competition concerns. No formal settlement procedure for admitted infringements.

Penalties & Sanctions

Fully Addressed

Financial penalties of up to 10% of worldwide turnover for the duration of the infringement. Directors and officers may face personal liability for involvement.

Digital Markets Regulation

Not Addressed

No specific digital markets competition regulation. The Competition Act applies generally to digital economy participants.

Sector Regulators

Fully Addressed

The Malaysian Communications and Multimedia Commission (MCMC) has concurrent competition jurisdiction in telecommunications. The Malaysian Aviation Commission handles aviation competition.

Dawn Raids & Investigations

Fully Addressed

MyCC has powers to enter premises with a warrant, seize documents, and require information. It can also conduct unannounced inspections with judicial authorisation.

Private Enforcement

Partially Addressed

Any person who has suffered loss or damage from an infringement may bring a private action for damages. Follow-on actions are supported but standalone claims are less established.

International Cooperation

Fully Addressed

MyCC cooperates with ASEAN competition authorities, the ICN, and has MOUs with competition agencies in Japan, Australia, and South Korea.