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monopoly

Puspakom will no longer monopolize the periodic inspection service of motor vehicles after its concession expires on August 31.

Puspakom was appointed by the government in 1994 as the first and only national vehicle inspection company.

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Responding to allegations by the Federation of Malaysian Consumers Association (FOMCA) with regard to the Malaysia Competition Commission (MyCC) failing to put an end to the ‘monopolistic behaviour of Touch ‘n Go Sdn. Bhd. And TnG Digital (TnG)’, the Commission has clarified that there is a misconception on the issues of monopolies.

The Competition Act 2010 (Act 712) acknowledges that a dominant or monopoly in a particular market is not an infringement. The infringement occurs when the enterprise abuses it position in the market. “In this instance, MyCC recognises that TnG monopolises the toll payment system only. They became a monopoly naturally as soon as the Government decided, via a gazette, to abolish cash payment for tolls nationwide with the intention of reducing the congestion at the toll booths for the convenience of highway users,” MyCC explained in its press statement recently.

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