The Malaysian Competition Commission (MyCC) has posted a press release touching on allegations made by the Federation of Malaysian Consumers Association (FOMCA) in relation to the ‘monopolistic behaviour’ of Touch ‘n Go (TnG).
It seems that FOMCA slammed MyCC for not doing their part in ending TnG’s ‘monopolistic behaviour’ by citing the Competition Act 2010 (Act 712) following a number of alleged moves made since 2018 by both Touch ‘n Go Sdn Bhd as well as TNG Digital.
MLFF toll system to able more payment methods
In response to the statement made by FOMCA, MyCC responded by stating that the understanding of the Competition Act 2010 was wrongly conceptualised by FOMCA as the issue of monopolies can only be taken into action if or when the company abuses its position in the current market.
It turns out that being dominant or monopoly in a current market is not an infringement and MyCC understands that the TnG monopoly on the toll payment system came to light following the government’s decision to abolish cash payments at tolls to reduce congestion.
The association between TnG and all highway concessionaires is currently governed by the Malaysian Highway Authority, which is not under MyCC’s jurisdiction. TnG itself is governed by Bank Negara Malaysia (BNM) following the nature of the company as an electronic money service provider.
Nevertheless, MyCC did state that the future of the multi-lane free-flow (MLFF) toll system will allow all highway users to use any digital mode of payment (including debit and credit cards) and thus eliminating TnG’s monopoly on toll payment systems – a monopoly that naturally took place and not by company abusing its position in the market.
Limited interventions by MyCC – good results
MyCC also stated that despite its limited interventions on several issues raised by FOMCA as well as public complaints towards TnG, they were able to resolve a few matters such as:
Abolish TnG’s parking surcharge at 94% of locations in 2021
Pushed for more TnG reload channels & free-of-charge reload services
Introduction of TnG NFC cards
Refund for dormant and lost cards to be completed within 30 days
“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.”