Content360 2023
MyCC addresses 'misconceptions', says TnG did not violate competition act 

MyCC addresses 'misconceptions', says TnG did not violate competition act 

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The Malaysia Competition Commission (MyCC) has responded to allegations by Federation of Malaysian Consumers Associations (FOMCA) which accused MyCC of “for failing to put an end to the monopolistic behaviour” of TnG (Touch n Go) service in Malaysia.

In response to the allegations, MyCC said it wishes to clarify that it is cognizant of the issues raised by the public including FOMCA and other stakeholders on this matter, and explained that despite the issues raised, the digital payment system did not raise any competition concerns under the Competition Act 2010. While it admitted that TNG is a monopoly when it comes to the payment of tolls, the issues being raised are largely on the consumer front.

“In this instance, MyCC recognises that TnG monopolises the toll payment system only. It 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,” it explained. It added that it has been continuously monitoring the market in which TnG operates, and added that “there is a clear misconception imposed by FOMCA on the issues of monopolies”.

That said, MyCC clarified that it does not have the jurisdiction in consumer issues between TnG and its users. 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 regards to toll payment system, it is governed by Lembaga Lebuhraya Malaysia.

MyCC noted that in January 2023, the public’s frustration with the products and services of TnG including RFID, TnG NFC card and TnG Visa card had reached its peak. As part of the recently formed task force by the current Minister of Domestic Trade and Cost of Living (“KPDN”), MyCC together with KPDN highlighted to TnG on the confusion caused by TnG’s branding on the Visa card when in fact the TnG Visa card cannot be used for payment of toll and public transportation.

MyCC said TnG “should practise a more effective communication method to ensure that consumers are well informed”on matters associated with TnG, of which the public seems to be unaware of including the fact on the incompatibility issue of the chip of a normal TnG card with the chip in its Visa card. In addition to the issue on the TnG Visa card, MyCC said that it 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.

“While MyCC appreciates that TnG has tried to fulfil the demand for the NFC card in the face of global shortage of the relevant chip, TnG should have taken 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,” it said.

MyCC claimed that it has also advised TnG to be more transparent on the RM25 special edition TnG NFC card in terms of its actual cost and amount of donation that will be forwarded to targeted organisations knowing that the normal TnG NFC card is being sold at RM10 and the shortage of NFC in the market via TnG channel.

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