KUALA LUMPUR: The Malaysia Competition Commission (MyCC) has cautioned certain enterprises over recent statements to consumers about the potential increase in the prices of food items and other goods.

       In a statement, the competition regulator said it viewed the comments to consumers with "deep concern", given that the enterprises had strong leverage in the relevant markets.

       "The said statements could amount to an attempt to shape the conduct of enterprises in the market.

       "Such actions, if found to have the object of significantly preventing, restricting or distorting competition in the market, can raise competition concerns under the Competition Act 2010. For instance, signalling the market on potential price increase.

       "The said statements of these entities are unnecessary and can cause fear and panic amongst consumers," it said.

       It added that price signalling may include an invitation to collude or a public statement that has the potential anti-competitive effects of pricing disclosures and may amount to a violation under either generic prohibitions of anti-competitive agreements, or concerted practices prohibitions.

       According to MyCC, the recent statements warned consumers and others to prepare themselves for prices to rise up to 10% and to expect a disruption to certain essential food items until Ramadhan and Aidilfitri due to the prolonged discussion on subsidy.

       MyCC reminded all parties to focus their attention to working with the government to finding the best mechanism to address the issues.

       “MyCC will continue to actively monitor these situations and assess the impact of anti-competitive price signalling and price disclosures; investigate anti-competitive information disclosure and exchanges; and, where appropriate, take enforcement actions including imposing appropriate penalty and direction against the parties concerned,” said MyCC CEO Iskandar Ismail.