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Megasteel did not infringe competition law: MyCC

April 18, 2016

– PETALING JAYA – Lion Corp Bhd’s 79%-owned subsidiary Megasteel Sdn Bhd has been cleared of alleged abuse of its dominant position in the domestic market.

A notice of finding of non-infringement from the Malaysia Competition Commission (MyCC) dated April 15, 2016 said MyCC determined that there is no infringement by Megasteel of Section 10(1) of the Competition Act, 2010 as stipulated in the proposed decision.

“In arriving at the non-infringement finding, MyCC had concluded that Megasteel did not abuse its dominant position nor practise margin squeeze in the relevant domestic markets. The above final decision was made after careful reassessment of the case with more detailed information obtained through written and oral representations submitted by Megasteel as well as further analysis made by MyCC,” Lion Corp said in a filing with the stock exchange.

In 2013, MyCC issued its “proposed decision” in which MyCC was of the view that Megasteel had breached Section 10(1) of the Competition Act, 2010 in that Megasteel had abused its dominant position by charging or imposing a price for its hot-rolled coils that amounted to a margin squeeze that produced anti-competitive effects in the cold-rolled coil market.

Under the proposed decision, a financial penalty of RM4.5 million was to be imposed by MyCC on Megasteel.

(The Sun Daily)