KUALA LUMPUR (June 1): The Malaysia Competition Commission (MyCC) has fined five firms a total RM645,774 for engaging in price-cartel activities.

In a statement today, MyCC said it has issued a decision of finding of infringements pursuant to section 40 of the Competition Act 2010 against Containerchain (M) Sdn Bhd, which is an information technology service provider to the shipping and logistics industry in Penang.

The other four firms are container depot operators, namely Ayza Industries Sdn Bhd/Ayza Logistics Sdn Bhd, ICS Depot Services Sdn Bhd, E.A.E. Depot & Freight Forwarding Sdn Bhd, and Prompt Dynamics Sdn Bhd.

MyCC said the five have infringed the act by entering into agreements to increase depot gate charges imposed on their customers from RM5 to RM25, while the container depot operators fixed a rebate of RM5 offered to hauliers in respect of the depot gate charges.

The MyCC also held that the container depot operators had committed an offence by agreeing to fix the RM25 depot gate charges together with the RM5 rebate, which is deemed to have the object of significantly preventing, restricting or distorting competition in the market for the provision of empty container storage, maintenance and handling services within a 5 to 15 kilometers radius of the Penang Port.

The five firms were also imposed an additional penalty of RM7,000 for each day they failed to cease implementation of the agreed rate for the depot gate charges, and rebate within 30 days from the date of decision.

Containerchain is to also provide an undertaking to the MYCC to reconfigure the Containerchain system, to ensure it is not being used for any anti-competitive conduct.

“All future prices and other trading conditions should be determined independently by all container depot operators who have subscribed to the Containerchain system,” said MyCC.

Each of the infringing firm has 30 days from the date of decision, to pay the financial penalty.