Industry / Competition / Introduction

Introduction

From 1 March 2016 onwards, aviation services in Malaysia are governed by competition law as provided in the Malaysian Aviation Commission Act 2015, in particular, Part VII (Competition) of the Act. Correspondingly, the Malaysian Aviation Commission Act 2015 is excluded from the application of the Competition Act 2010 through its insertion into Schedule 1 of the Competition Act 2010, effective from 1 March 2016.

Part VII (Competition) of the Malaysian Aviation Commission Act 2015 applies to —

  • any commercial activity, agreement or merger affecting aviation services within Malaysia; and
  • any commercial activity, agreement or merger transacted or executed outside Malaysia which has an effect on competition in any aviation service market in Malaysia.

Part VII (Competition) of the Malaysian Aviation Commission Act 2015 does not apply to any commercial activity, agreement or merger specified in the Third Schedule of the Act, which are as follows:

  • The administration and provision of public service obligations and the agreements entered into in respect of the public service obligations;
  • Existing agreements entered into with the Government as amended from time to time;
  • An agreement or conduct to the extent to which it is engaged in an order to comply with a legislative requirement;
  • Collective bargaining activities or collective agreements in respect of employment terms and conditions and which are negotiated or concluded between parties which include both employers and employees or organisations established to represent the interests of employers or employees;
  • An enterprise entrusted with the operation of services of general economic interest or having the character of a revenue-producing monopoly in so far as the prohibition under Division 2 of Part VII would obstruct the performance, in law or in fact, of the particular tasks assigned to the enterprise.

For matters relating to Part VII (Competition) of the Malaysian Aviation Commission Act 2015, please e-mail your enquiries to:
competition@mavcom.my

Division 1 of Part VII & Third Schedule of the Malaysian Aviation Commission Act 2015