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SERC Consultative Panel Discussion
“Malaysia’s Competition Act 2010”
5th January 2012, 2.30pm
Moderated By
Dato’ Dr. Ir. Andy Seo
Socio-Economic
Research Centre
Competition Law 2010
Presented by
SHILA DORAI RAJ
shila@mycc.gov.my
Malaysia Competition Commission (MyCC)
2
Synopsis
Part I
Background
• Need for competition law – an enforcement issue
• Worldwide enforcement
• Back home in Malaysia
Part II
Prohibitions
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Application
Prohibition 1: Agreements which distort competition
Relief from liability
Prohibition 2: Abuse of dominant Position
General Exclusion
Part III
Malaysia
Competition
Commission
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Competition law eco system
Guidelines and competition champion
Complaints and investigation
Sanctions and appeal
Part I - Why Competition Law?
PROMOTE COMPETITION
Promote competition to increase private investment and market
dynamism
Competition Law provides
a regulatory framework
against market
manipulation and cartel
practices
HEALTHY
COMPETITION
Healthy competition
will make the economy
more efficient and
dynamic
COMPETITIVE
ECONOMY
Creating a competitive
domestic economy
Background of Competition Law in Malaysia
Policy discussions on Competition regime since 1995!
Mandate for
development and
implementation of
competition
policy & law:
Eighth Malaysia Plan
(2001 -2005)
Ninth Malaysia Plan
(2006 -2010)
Tenth Malaysia Plan
(2011 – 2015)
Encourage growth
of firms through
efficiency and
innovation
&
Prevent anti
competitive
practices
─ collusion/cartel
activities and
abuse of market
power
1
Competition
Act 2010
(Act 712)
2
Competition
Commission
Act 2010
(Act 713)
Fair Trade
Practices
Policy
(2005)
Background: What’s in it for me?
Government
 Correlation between competition and GDP
 Free Trade Agreements (FTAs)
Businesses
 Product spurred by efficiency and innovation
 Level Playing Field(big and small, foreign and local)
 Protect from abuses by Dominant Firms
Consumers
 Lower prices
 Better products and innovation
 Freedom of choice
8
Having the Act alone is not enough,
we need to IMPLEMENT
Degree of
implementation
of Competition
Law in Asia
Philippines has competition
provision in its 1987 Constitution
but no effective framework
In ASEAN, Philippines Laos,
Cambodia, & Myanmar are the
only countries yet to implement
Competition Act