Malaysia: Competition Appeal Tribunal rejected Dagang Net's appeal against Malaysian Competition Commission's ruling regarding abuse of dominance

On 18 December 2023, the Competition Appeal Tribunal (CAT) rejected Dagang Net's appeal against the Malaysia Competition Commission's (MyCC) ruling that it had abused its market dominance, violating Section 10(1) of the Competition Act 2010 (Act 712). The CAT upheld MyCC's findings and the amount imposed as a financial penalty. In the original investigation, 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 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.