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Industry / Competition / Anti-competitive agreement

Anti-competitive agreement

Any agreement which has the object or effect of significantly preventing, restricting, or distorting competition in any aviation service market is prohibited under Malaysian law. These include but are not restricted to agreements involving:

  • price-fixing;
  • sharing of aviation service market or sources of supply;
  • limiting or controlling production;
  • limiting or controlling market outlets or market access;
  • limiting or controlling technical or technological development;
  • limiting or controlling investment; and
  • bid-rigging.

MAVCOM has the authority to consider and grant an individual exemption (under Section 51) or a block exemption (under Section 52) based on the reasons provided under Section 50 of the Malaysian Aviation Commission Act 2015:

  • there are significant identifiable technological, efficiency or social benefits directly arising from the agreement;
  • the benefits could not reasonably have been provided by the parties to the agreement without the agreement having the effect of preventing, restricting or distorting competition;
  • the detrimental effect of the agreement on competition is proportionate to the benefits provided; and
  • the agreement does not allow the enterprise concerned to eliminate competition completely in respect of a substantial part of the aviation services.

For more information, please refer to the Guidelines on Anti-Competitive Agreements.

Any application for an individual exemption or a block exemption shall be made in the form and manner prescribed in these respective documents:

Division 2, Part VII of the Malaysian Aviation Commission Act 2015