The Malaysia Competition Commission is not too happy with the allegation made by FOMCA that the commission had failed to move in on Touch n Go on its monopolistic behaviour and poor service towards its users.
In response, MyCC said that it is cognisant of the issues raised by the public including FOMCA and other stakeholders on this matter and has been continuously monitoring the market in which TnG operates. The commission also clarified that there is a clear misconception on the issues of monopolies. According to the Competition Act 2010 (“Act 712”) it sets out that being a dominant or monopoly in a particular market is not an infringement. However, a monopolistic or dominant enterprise infringes Act 712 only when it abuses its position in the market.
In this instance, MyCC Chairman Dato’ Seri Mohd Hishamudin Yunus said the commission recognises that TnG monopolises the toll payment system only and that the commission does not have jurisdiction over consumer issues between TnG and its users. However, the Chairman pointed out that TnG being an electronic money service provider is governed by Bank Negara Malaysia through its relevant laws and guidelines. As for the association between TnG and toll concessionaires with regard to the toll payment system, it is governed by Lembaga Lebuhraya Malaysia.
Hishamuddin said he is aware of TnG’s products and has been in discussion with the company, on the TnG Visa card, he said that MyCC is aware that TnG has been unable to effectively address the public’s concern on the issue of scalpers selling TnG NFC cards at exorbitant prices. But the company has been advised to take more stern actions against these scalpers that have caused losses to users who have had to pay higher prices to obtain and enjoy the features of the NFC cards.
He added MyCC has been working tirelessly since 2019 to further enhance its powers under Act 712 and the Competition Commission Act 2010 via the amendments of both Acts, which are expected to be tabled in Parliament by this year. The amendments focus on the powers of MyCC to investigate and enforce the law including the introduction of the merger control regime to prevent the formation of cartels and new monopolies.