KUALA LUMPUR: The Malaysia Competition Commission (MyCC) has slapped fines totalling RM2.2mil on three roll-on/roll-off (Ro-Ro) operators and two enterprises in Langkawi for forming a cartel to increase fare prices for commercial vehicles and passenger cars.

       MyCC said those involved, which operated routes between Langkawi and Kuala Perlis, had inked two memorandums of understanding (MOUs) in 2018 and 2019 between themselves to fix their fares.

       As such, action was taken against them for infringing Section 4 of the Competition Act 2010 for forming a price-fixing cartel.

       The five entities – Langkawi Ro-Ro Ferry Services Sdn Bhd, Langkawi Auto Express Sdn Bhd, Dibuk Cargo Services Sdn Bhd, Dibuk Sdn Bhd and Langkawi Ferry Services Sdn Bhd which operated routes between Langkawi and Kuala Perlis – signed two MOU in 2018 and 2019 between themselves to fix the fares.

       Langkawi Auto Express, which is a joint venture between Dibuk and Langkawi Ferry Services, was fined RM1,130,878; Dibuk Cargo Services was fined RM250,172; and Langkawi Ro-Ro Ferry Services was fined RM810,531.

       The decision was served on the parties involved on Dec 29, 2021.

       The Domestic Trade and Consumer Affairs Ministry had instructed MyCC to investigate the similarities of the fares following complaints from the public on the price hikes in Langkawi.

       MyCC chief executive officer Iskandar Ismail said the entities were directed to cease and refrain from future price increases that might disrupt competition in the market.

       “This clearly demonstrated the distortion caused by a cartel in the supply chain that can lead to price increases.

       “This in turn robs people of their hard-earned money, especially Langkawi residents and tourists.

       “The action by MyCC serves as a warning to businesses that we have zero tolerance for such activities,” he told a press conference yesterday.

       In 2018, commercial vehicles were charged RM429 to RM1,132 while private vehicles were charged RM302 to RM429 as a result of the MOU.

       In 2019, commercial vehicles were charged RM540 to RM1,244, while private vehicles were charged RM332 to RM534.

       Although it is the norm to impose a 10% fine based on the company’s revenue, Iskandar said MyCC offered a 50% discount due to the financial constraints faced by businesses following the Covid-19 pandemic.

       He added that the enterprises were also told to cease implementing price increases that might disrupt competition in the market.

       MyCC also told them to independently set their future charges for their vessels.

       “We have also agreed to grant them a moratorium of six months from the date of decision to pay the penalties,” said Iskandar.