MyCC clears Megasteel of Competition Act infringement

The Malaysia Competition Commission (MyCC) has found that there is no infringement of the Competition Act 2010 by Megasteel Sdn Bhd.

In a statement today, the MyCC said it had initiated an investigation in October 2012 upon receipt of a complaint relating to the alleged abuse of dominant position by Megasteel, an infringement of Section 10(1) of the Competition Act 2010.

"After deliberating on the written and oral representations submitted by Megasteel, the MyCC has conducted further analysis and came to the conclusion that Megasteel neither abuse its dominant position nor practice margin squeeze in the relevant markets.

"The MyCC therefore finds that there is no infringement of the Competition Act 2010 by Megasteel," it said, adding it had issued a Finding of Non-Infringement in relation to the conduct of the company.

Megasteel was alleged to have charged higher than the international price of hot rolled coil as the sole supplier of the product, which is an essential material to produce cold rolled coil (CRC).

The complainant had also alleged that Megasteel is competing in the CRC market and often undercuts its price.