Amendment of the Competition Act 2010

1) Introduction

The Competition Act 2012 was passed by the Parliamentand came into force on 1st January 2012.

The Act was introduced to promote the economicdevelopment by promoting and protecting the process ofcompetition. The business practice must be concomitantwith the concept of competition law and policy to ensurethe interest of the consumer will also be protected.

2) Section 2 – definition of enterprise

Presently – Refers to any entity carrying on commercial activities …

The Commission proposed to extend the application of the Act to various entities that carry out any commercial and economic activities.

3) Section 2 – definition of enterprise

Based on previous cases, few parties have managed to escape liability because they lack the economic criteria required to be defined as an enterprise.

i.e trade association that does not carry out any commercial activity but is capable of making a decision that will be followed by the members of association such as price fixing

i.e trade association and individual

4) Section 2 – definition of enterprise

Proposed amendment – for the provision to read as any person, being an individual, a body corporate, an unincorporated body of persons or other entity capable of carrying on commercial or economic…

Reference were made to the provision in other countries.Eg: Singapore and EU

5) Insertion of the word “or economic" in section 3

This is to ensure consistency of this phraseappearing after the word “commercial’ in the Act.

6) Insertion of the words “while allowing consumers of the fair share of the resulting benefit” after the words “social benefits” in Section 5(a)

Stringent requirements to justify the anti-competitive agreement in the market

This is in line with the aim of competition law in Malaysia which is to protect the consumers

7) Insertion of section 8A

To empower the Commission to vary or impose additionalcondition or obligation on the granted block exemption

Benefit to the CommissionBenefit to the Commission Benefit to the consumerBenefit to the consumer

Any development to the business practice such as online sales can be accounted for in the granted block exemption order thus making it more comprehensive instead of waiting for it to expiry.

Provide legal certainty to the anti-competitive agreement that falls under the block exemption order. There is no guarantee that the anti-competitive may acquire an exemption upon new application made after the expiry of the order.

8) Insertion of section 9A

To introduce provision on the procedure for varying, removingor imposing condition as provided in the new section 8A on thegranted block exemption

Varying Condition

Removing ConditionImposing Condition

9) Insertion of the word “or infringement” after the word “offence” in Section 17

To extend the existing investigation powers of the Commission officer to infringement cases as the complaints made to the Commission also involves infringement

Provides consistency as the word is being defined in Section 2 of the Act

10) Substitution of the present section 18

To provide better provision regarding power of Commission officer to require information

The wording of the new Section 18 is consistent with the section contained in the other Acts such as the Companies Commission Act 2015 and Aviation Commission Bill

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