Malaysia: Issued ruling in MyCC investigation against Dagang Net for anti-competitive behaviour

On 26 February 2021, the Malaysia Competition Commission (MyCC) issued a ruling against Dagang Net Technologies Sdn Bhd (Dagang Net) for engaging in exclusive dealing, violating Section 10(1) of the Competition Act 2010 (Act 712). Dagang Net, the sole service provider for the National Single Window (NSW) system, was found to have imposed exclusivity clauses on software providers from October 2015 to November 2017. This action was deemed to abuse Dagang Net's dominant market position by preventing software providers from offering similar services for the upcoming uCustoms system, thereby harming competition. As a result, MyCC imposed a financial penalty of MYR 10.3 million (ca. USD 2.2 million) on Dagang Net and directed the cessation of such exclusive dealings. Additionally, MyCC mandated that Dagang Net's directors and senior management undergo competition law compliance training at their own expense.