Analysis of Malaysian Competition Law and Policies in the E-Commerce Platforms Market
Article Sidebar
Main Article Content
Abstract
The current competition law framework in Malaysia is found in the Competition Act 2010 and Competition Commission Act 2010, supplemented by various Malaysia Competition Commission Guidelines. An analysis of the e-commerce platforms market would demonstrate the creation of complex conglomerate ecosystems surrounding a few incumbent platforms that are resistant to conventional monocentric competition laws and policies focusing on price. Consumer complaints suggest the presence of unfair, exclusionary, and exploitative practices that affect various parties in the multi-sided e-commerce platforms that depend on the platform's infrastructure. This research seeks to identify the e-commerce platforms market ecosystem in Malaysia and analyse the regulatory framework governing market competition and safeguarding consumer protection in the e-commerce platforms market in Malaysia with references to notable competition cases and trending consumer complaints. Crucially, it aims to compare the Malaysian competition laws and policies against the Digital Markets Act and the Digital Services Act of the European Union in the context of the digital market, and employs doctrinal research, wherein the primary data is obtained through systematic content analysis of relevant reports and articles. Malaysian competition laws and policies have potential weaknesses that can be strengthened to safeguard consumer protection in the e-commerce platforms market.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
References
‘EU Digital Markets Act: Next Steps and Long-Term Outlook’ (Dentons, 7 December 2022) <https://www.dentons.com/en/insights/articles/2022/december/7/eu-digital-markets-act-next-steps-and-long-term-outlook>
‘Online Marketplaces in Southeast Asia: A Unique Region for Ecommerce’ (Webretailer, 30 January 2023) <https://www.webretailer.com/marketplaces-worldwide/online-marketplaces-southeast-asia/>
‘The History of Ecommerce: How Did It All Begin?’ (Miva, 23 Nov 2020) <https://blog.miva.com/the-history-of-ecommerce-how-did-it-all-begin>.
‘Top 20 E-Commerce Site in Malaysia 2023’ (Marketing Signal Lab, 7 March 2022) <https://marketingsignallab.com/top-ecommerce-sites-in-malaysia/>
Anis Hazim, ‘Home Shopping Astro Go Shop to Cease Operations After Eight Years’ The Edge Malaysia (2 October 2023) <https://theedgemalaysia.com/node/684554>
Association of Southeast Asian Nations, ‘ASEAN E-Commerce’ <https://asean.org/our-communities/economic-community/asean-e-commerce/>
Ben Kazinik, ‘The History of eCommerce: How it All Started’ (Mayple, 11 May 2023) <https://www.mayple.com/blog/history-of-ecommerce>
Carlo Maria Rossotto and others, ‘Digital Platforms: A Literature Review and Policy Implications for Development’ (2018) 19(1-2) Competition and Regulation in Network Industries 93 <https://doi.org/10.1177/1783591718809485>
Competition Act 2010
Competition and Consumer Commmission of Singapore, E-commerce Platforms Market Study: Findings and Recommendations (10 September 2020) <https://www.cccs.gov.sg/-/media/custom/ccs/files/media-and-publications/publications/market-studies/cccs-ecommerce-platforms-market-study-report.ashx>
Competition Commission v Dagang Net Technologies Sdn Bhd [2015] Malaysia Competition Commission Case No 700-2/2/003/2015, para 172 <https://www.mycc.gov.my/sites/default/files/pdf/decision/Decision%20against%20Dagang%20Net%20Technologies%20Sdn%20Bhd%20pursuant%20to%20Section%2040_%20Dated%2028%20February%202021_Public%20Version.pdf>
Competition Commission v MyEG Services Berhad [2016] Malaysia Competition Commission Case No 700-1/1/2/2015 <https://www.mycc.gov.my/sites/default/files/pdf/decision/Section-40-Notice-of-Finding-of-an-Infringement-by-My-Services-Berhad.pdf>
Council Regulation (EC) 2020/0361 (COD) on a Single Market for Digital Services (Digital Services Act) and amending Directive 2000/31/EC [2000] <https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52022AP0014>.
Elaine Boey, ‘E-Commerce: Astro’s Go Shop Meets Soaring Demand’ The Edge Markets (17 August 2020) <https://www.theedgemarkets.com/article/ecommerce-astros-go-shop-meets-soaring-demand>
European Commission, ‘Europe Fit for the Digital Age: New Online Rules for Platforms’ <https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/europe-fit-digital-age/digital-services-act-ensuring-safe-and-accountable-online-environment/europe-fit-digital-age-new-online-rules-platforms_en>
European Commission, ‘Proposal for a Regulation of the European Parliament and of the Council on Contestable and Fair Markets in the Digital Sector (Digital Markets Act)’ [2020] Regulation (EC) 2020/0374 (COD) art 3 <https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52020PC0842>
European Commission, ‘The Digital Markets Act: Ensuring Fair and Open Digital Markets’ <https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/europe-fit-digital-age/digital-markets-act-ensuring-fair-and-open-digital-markets_en>
European Commission, ‘The Digital Services Act Package’ (9 February 2023) <https://digital-strategy.ec.europa.eu/en/policies/digital-services-act-package>
Feng Zhu and Marco Iansiti, ‘Dynamics of Platform Competition: Exploring the Role of Installed Base, Platform Quality and Consumer Expectations’ (November 2007) Harvard Business School Working Paper Series 08-031, 2 <https://www.hbs.edu/ris/Publication%20Files/08-031_18af2edb-02de-45e6-b0ee-e10de3c99ef7.pdf>
Filippo Lancieri and Patricia Morita Sakowski, ‘Competition in Digital Markets: A Review of Expert Reports’ (2021) 26(1) Standford Journal of Law, Business & Finance 65, 106 <https://www.econstor.eu/bitstream/10419/262705/1/wp303.pdf>.
Fukunari Kimura and Lurong Chen, ‘E-Commerce as Asia's New Growth Engine’ (Economic Research Insitute for ASEAN and East Asia Policy Brief, October 2017) <https://www.eria.org/ERIA-PB-2017-02.pdf>
Ho Kit Yen, ‘Court Quashes Competition Commission’s RM86.8mil Fine on Grab’ Free Malaysia Today (6 July 2023) <https://www.freemalaysiatoday.com/category/nation/2023/07/06/court-quashes-rm86-8mil-fine-on-grab-over-uber-merger/>
Joseph Farrell and Paul Klemperer, ‘Coordination and Lock-In: Competition With Switching Costs and Network Effects’ In M Armstrong and R Porter (eds), Handbook of Industrial Organization, vol 3 (Elsevier 2007) 1967, 89 <https://doi.org/10.1016/S1573-448X(06)03031-7>
Karen Gilchrist, ‘How These Millennial Tech Founders Pulled Off Indonesia’s Biggest-Ever Business Deal’ CNBC (8 June 2021) <https://www.cnbc.com/2021/06/09/goto-how-gojek-and-tokopedia-teamed-up-in-indonesias-biggest-merger.html>
Malaysia Competition Commission, ‘Handbook and Brochure’ <https://www.mycc.gov.my/handbook-and-brochure>
Malaysia Competition Commission, ‘Malaysia Competition Commission Proposes to Fine Grab RM86 Million for Abusive Practices’ (3 October 2019), <https://www.mycc.gov.my/sites/default/files/pdf/decision/Proposed%20Decision%20against%20GRAB%20%28Eng%29.pdf>
Malaysia Competition Commission, Guidelines on Chapter 2 Prohibition: Abuse of Dominant Position (January 2022) para 1.2 <https://www.mycc.gov.my/sites/default/files/pdf/newsroom/Chapter%202%20prohibition.pdf>
Malaysia Competition Commission, Guidelines on Market Definition (January 2022) paras 1.3–1.4 <https://www.mycc.gov.my/sites/default/files/pdf/newsroom/market%20defination.pdf>
Malaysian Communications and Multimedia Commission, ‘Chapter 6: Quality Assurance and Consumer Protection’ in 2019 Industry Performance Report (2020) <https://www.mcmc.gov.my/ipr2019/downloads/MCMC_IPR_2019_Full.pdf>
Malaysian Parliamentary Debates, House of Representatives, Thirteenth Parliament, Second Session, First Meeting, 26 March 2014, p 137, Dato’ Sri Hasan bin Malek <http://lib.perdana.org.my/PLF/Parliament_Hansard/2014/Dewan%20Rakyat/DR-26032014.pdf>
NSW-SMK is an abbreviation for National Single Window-Sistem Maklumat Kastam, it is an electronic-based ecosystem that enables Malaysian Customs related documents and transactions to be done electronically via a single point of entry: Dagang Net Technologies (n 43) para 21.
Organisation for Economic Co-operation and Development, ‘Rethinking Antitrust Tools for Multi-Sided Platforms 2018’ (6 April 2018) 57 <http://www.oecd.org/competition/rethinking-antitrust-tools-for-multi-sided-platforms.htm>.
Paolo Spagnoletti, Andrea Resca and Gwanhoo Lee, ‘A Design Theory for Digital Platforms Supporting Online Communities: A Multiple Case Study’ (2015) 30 Journal of Information technology 364 <https://link.springer.com/article/10.1057/jit.2014.37>
Philip Marsden and Rupprecht Podszun, ‘Restoring Balance to Digital Competition: Sensible Rules, Effective Enforcement’ (Konrad Adenauer Foundation, 2020) <https://www.kas.de/documents/252038/7995358/Restoring+Balance+to+Digital+Competition+%E2%80%93+Sensible+Rules%2C+Effective+Enforcement.pdf/7cb5ab1a-a5c2-54f0-3dcd-db6ef7fd9c78?version=1.0&t=1601365173489>
Rahmat Khairulrijal, ‘High Court Overturns RM86 Million Fine Against Grab Over Anti-Competitive Practices’ New Straits Times (6 July 2023) <https://www.nst.com.my/news/crime-courts/2023/07/928024/high-court-overturns-rm868-million-fine-against-grab-over-anti>
Sal Arora and others, ‘E-Commerce Is Entering a New Phase in Southeast Asia. Are Logistics Players Prepared?’ (McKinsey & Company, 21 December 2022) <https://www.mckinsey.com/industries/travel-logistics-and-infrastructure/our-insights/e-commerce-is-entering-a-new-phase-in-southeast-asia-are-logistics-players-prepared>
Sea Limited, ‘FY 2022 Annual Report’ (2022) 92 <https://cdn.sea.com/webmain/static/resource/seagroup/pressrelease/2022AR/6XNmuGkDrCopmdEwH15M/2023-04-06%20-%20Form%2020-F.pdf>
Sheila Chiang, ‘Foodpanda Confirms Layoffs, Says It’s in Talks to Sell Part of Asia Food Delivery Business’, CNBC (22 September 2023) <https://www.cnbc.com/2023/09/22/foodpanda-confirms-talks-to-sell-part-of-its-asia-business-layoffs.html>
Shruti Tiwari, ‘Top 10 eCommerce Sites in Malaysia!’ (CedCommerce, 26 October 2022) <https://cedcommerce.com/blog/top-ecommerce-sites-malaysia/>
Stigler Center for the Study of the Economy and the State, Stigler Committee on Digital Platforms: Final Report (The University of Chicago Booth School of Business, 2019) <https://publicknowledge.org/policy/stigler-committee-on-digital-platforms-final-report/>
Suzanna Pillay, ‘Online Shoppers in a Web of Scammers’ New Straits Times (4 June 2017) <https://www.nst.com.my/news/exclusive/2017/06/245502/online-shoppers-web-scammers>
Tom Wheeler, ‘The UK and EU Establish Positions as Regulatory First Movers While the US Watchers’ (The Brookings Institution, 8 March 2023) <https://www.brookings.edu/articles/the-uk-and-eu-establish-positions-as-regulatory-first-movers-while-the-us-watches/>
UK Digital Competition Expert Panel, Unlocking Digital Competition: Report of the Digital Competition Expert Panel (13 March 2019) 13 <https://www.gov.uk/government/publications/unlocking-digital-competition-report-of-the-digital-competition-expert-panel>