What specific infringement did MyCC find Piam and its members guilty of?

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MyCC Found Piam and Members Guilty of Price-Fixing Agreement

The Malaysia Competition Commission (MyCC) found the General Insurance Association of Malaysia (Piam) and its 22 members guilty of infringing Section 4 of the Competition Act 2010. This infringement stemmed from an agreement that dictated the application of trade discounts on parts prices and hourly labour rates for motor vehicle repairs under the Piam Approved Repairers Scheme.
Agreement on Trade Discounts and Labour Rates

MyCC's investigation concluded that Piam and its members had entered into an anti-competitive agreement concerning the pricing of motor vehicle repairs. Specifically, this agreement involved setting uniform trade discounts on parts and fixed hourly labour rates. These agreed-upon rates were applied by workshops participating in the Piam Approved Repairers Scheme, thereby limiting independent pricing mechanisms.
Direction to Cease and Desist

As a consequence of the infringement, MyCC issued a directive ordering Piam and its member companies to immediately cease the implementation of the agreed-upon trade discounts and hourly labour rates. The commission stipulated that these pricing components should henceforth be determined independently. This means that individual insurance companies and workshops are now required to negotiate and set their own rates without the influence of a collective agreement.
Impact on Consumers and Claims Process

Bank Negara Malaysia (BNM) expressed regret over MyCC's decision, stating that the arrangement was initially facilitated by BNM to resolve disputes between workshops and general insurance companies that negatively affected consumers. According to BNM, this arrangement, developed through discussions between Piam and the Federation of Automobile Workshops Owners Association of Malaysia (FAWOAM), had significantly reduced delays in motor repair claims settlement, improving the efficiency of the process for policyholders. BNM indicated that MyCC's decision could potentially reverse these positive outcomes and have broader implications for the accessibility and cost of motor insurance for consumers.

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What specific infringement did MyCC find Piam and its members guilty of?

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