In a statement today, MyCC said the liner shipping agreements were in respect of agreements concerning vessel sharing and voluntary discussion made within Malaysia or has an effect on the liner shipping services in Malaysia.
“The BEO is granted under section 8 of the Competition Act 2010 (Act) and the MyCC is satisfied all requirements under Section 5 of the Act have been fulfilled,” it said.
MyCC said the BEO should continue in force for three years from its Gazette date or until the same was cancelled by the MyCC.
“A review of the BEO will be conducted by the MyCC after two years from the date of its commencement,” it said.
The BEO only applies to transport services provided by liner operators in respect of ocean transport and does not include any inland carriage of goods occurring as part of through transport including services provided by logistic providers, forwarders and depot operators.
In addition, MyCC said, no element of pricing or tariff in any form was allowed in respect of the exempted services.
It added that the BEO did not exempt or provide immunity in respect of any abuse of a dominant position under section 10 of the Act.
“The MyCC’s decision to grant the BEO was based on studies conducted on the industry, and after consultations with stakeholders including the relevant government agencies,” it said.
A nationwide public consultation was also held over a period of a few months in 2013 and submissions from all stakeholders were taken into account in drawing up the BEO.
The BEO follows the block exemption application made by the Malaysia Shipowners Association, Shipping Association of Malaysia and Federation of Malaysian Port Operators Council filed with the MyCC previously.