FAQ > FAQ - On Competition Act 2010
FAQ - On Competition Act 2010
What is the objective of the Competition Act 2010?
To promote economic development by promoting and protecting the process of competiton. The process of competition which would encourage efficiency, innovation and entrepreneurship would promote competitive prices, improvement in the quality of products and services and provide wider choices for consumers.
When did the Competition Act 2010 come into force?
1 January 2012
The Competition Act 2010 applies to whom?
Except for anti-competitive practices regulated under the Communications and Multimedia Commission Act 1998 and Energy Commission Act 2001 and those exempted or excluded, the Competition Act 2010 applies to all those involved in commercial activities within and outside Malaysia. In relation to commercial activities outside Malaysia, it applies to any commercial activity transacted outside Malaysia which has an effect on competition in any market in Malaysia.
What kind of anti-competitive practices does the Competition Act 2010 prohibits?
Anti-competitive agreements and abuse of dominant position.
What is an anti-competitive agreement?
Agreement between enterprises which has the object or effect of significantly preventing, restricting or distorting competition in any market for goods or services.
What are the types of agreements which are prohibited under the Act?
Horizontal and Vertical agreements
What is an horizontal agreement?
An agreement between enterprises each of which operates at the same level in the production or distribution chain.
What is a vertical agreement?
Vertical agreement is one that is made between enterprises each of which operates at a different level in the production or distribution chain.
What are some of the types of horizontal agreements which are "perse" prohibited?
Agreements to fix, directly or indirectly, a purchase or selling price or any other trading conditions; share market or sources of supply; limit or control production, market outlets or market access, technical or technological development or investment; or perform an act of bid rigging.
When would an enterprise be defined as dominant?
An enterprise would be deemed to be dominant when it possesses such significant market power to adjust prices or outputs or trading terms without effective constraint from competitors or potential competitors.
What are the conducts which could be defined as abuse of a dominant position?
Among others, when a enterprise, whether independently or collectively, directly or indirectly imposes unfair purchase or selling prices or other unfair trading terms on any supplier or customer, limits or controls production, market outlets or market access, technical or technological development or investment to the prejudice of consumers. Abuse may also include refusing to supply to a particular enterprise or group, applying different conditions to equivalent transaction with other trading parties and predatory behaviour towards competitors
