The Federation of Malaysian Consumers Associations (FOMCA) recently accused MyCC of not ending Touch ‘n Go (TNG)’s alleged monopolistic behavior and called for a revamp of MyCC. However, MyCC has now issued a statement addressing these allegations.
MyCC Clarifies Misconceptions on Monopolies
MyCC clarified that there is a clear misconception imposed by FOMCA on the issues of monopolies. The Competition Act 2010 clearly states that being a dominant or monopoly in a market is not an infringement. However, a monopolistic or dominant enterprise infringes the act only when it abuses its position in the market.
In the case of TNG, MyCC recognizes that TNG monopolizes the toll payment system only. The government decided to abolish cash payment for tolls nationwide, leading to TNG becoming a monopoly.
MyCC’s Jurisdiction and TNG’s Issues
MyCC stated that it does not have authority over consumer issues between TNG and its users. TNG being an electronic money service provider is governed by Bank Negara Malaysia (BNM) through its relevant laws and guidelines. Meanwhile, the association between TNG and highway toll concessionaires with regards to toll payment systems is governed by the Malaysian Highway Authority (LLM), an agency under the Ministry of Works.
MyCC revealed that it looked into the issues raised by FOMCA in 2018 and found that TNG did not raise any competition concerns under the Competition Act 2010 despite being a monopoly for the toll payment system in Malaysia. However, MyCC took limited action and made changes that TNG implemented. This included abolishing TNG parking surcharge at 94% of its sites in 2021, increasing TNG reload channels with zero fees, introducing a new Enhanced TNG Card that allows instant reloads with NFC-enabled phones, and providing refunds for TNG cards within 30 days as imposed by BNM provided sufficient information has been provided.
TNG Urged to be Transparent on Proceeds of Special Edition Cards
MyCC is aware that TNG is unable to effectively address the concerns of scalpers reselling TNG NFC cards at exorbitant prices. The commission advised TNG to take more stern action against scalpers and be more transparent on the sale of its RM25 special edition TNG cards in terms of its actual cost and amount of donation that will be forwarded to the targeted organizations.
MyCC Supports RFID Tolling System to Accept Other Payment Platforms
MyCC fully supports the stance of the Ministry Of Domestic Trade & Consumer Affairs (KPDN) that TNG should be proactive in addressing the issues surrounding the implementation of RFID. The commission advised TNG to increase customer service locations, carry out advocacy, and ensure a more effective implementation and seamless transition to RFID for toll payment.
MyCC also shared its assessment and concerns on the implementation of RFID last year, including the need to consider not only the payment of tolls via debit or credit cards but also other eWallet systems. The former Works Minister Datuk Seri Fadhillah Yusof called all highway concessionaires to be ready for the implementation of a multi-lane-free-flow system (MLFF) where users are free to use any digital mode of payment, putting an end to TNG’s monopoly by 2025.
MyCC is enhancing its powers under the Competition Act 2010 to better address issues related to monopolies in the market. With these efforts, MyCC is ensuring a fair and competitive market for all stakeholders.
