3 Langkawi Ferry Operators Fined Rm2 2mil Over Price Fixing Says Mycc


 
A roll-on roll-off ferry berthing in Kuala Perlis. MyCC said three ferry operators formed a cartel to raise transportation charges. (Bernama pic)PETALING JAYA: The Malaysian Competition Commission (MyCC) has fined three major Langkawi Ro-Ro (roll-on roll-off) operators RM2.2 million for forming a price-fixing cartel.
According to a statement by MyCC, the domestic trade and consumer affairs ministry instructed MyCC to investigate an increase in the prices of goods and services in Langkawi.
It was determined that the price hikes were mainly due to higher fares for commercial vehicles using Ro-Ro ferries between Langkawi and Kuala Perlis.
MyCC said three main Ro-Ro operators along with two other enterprises were involved in private discussions in 2018 and 2019 to increase and fix fares not only for commercial vehicles but also for passenger cars using their Ro-Ro vessels.
The three Ro-Ro operators cited by MyCC are Langkawi Auto Express Sdn Bhd (LAE), Langkawi Ro-Ro Ferry Services Sdn Bhd (LRFS) and Dibuk Cargo Services Sdn Bhd (DCS), while the two related operators are Dibuk Sdn Bhd (Dibuk) and Langkawi Ferry Services Sdn Bhd (LFS).
LAE, which is owned by Dibuk and LFS through a joint venture, was fined RM1,130,876.87. DCS was fined RM250,172.25, while LRFS was fined RM810,531.29.
“MyCC abhors cartels as it is the supreme evil of competition law. We will not spare any party found to be involved in cartels,” said MyCC chief executive officer Iskandar Ismail.
“This act of economic sabotage will surely worsen the current plight of the rakyat if it goes on,” he added. - FMT


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