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Competition Law Compliance & Advisory in Malaysia — Protecting Your Business Before Problems Arise

The most effective competition law strategy is one that prevents infringement from occurring in the first place. A competition investigation by MyCC — with the attendant disruption to management, legal costs, reputational impact, and potential penalty of up to 10 per cent of worldwide turnover — is significantly more costly than a properly designed and implemented compliance programme. Prevention is always better than cure.

At NZSK, our competition law advisory practice in Kuala Lumpur and Selangor helps businesses understand their competition law obligations, identify the specific risk areas in their industry and business model, and put in place practical compliance measures that reduce their exposure to MyCC enforcement. With offices in Mont Kiara, KL and Puchong, Selangor, we advise Malaysian businesses, multinationals operating in Malaysia, SMEs, and industry associations across a wide range of sectors.

Why Choose Us?

Competition Compliance Programmes

A competition compliance programme is a structured set of policies, procedures, and training measures designed to ensure that a company’s business practices comply with the Competition Act 2010. An effective compliance programme does not just produce a manual that sits on a shelf — it is embedded in the day-to-day conduct of the business, understood by the people who face competition law risk in their work, and supported by proper governance structures.

We advise on the design and implementation of competition compliance programmes tailored to the specific risk profile of each business, including:

Competition law risk assessment — identifying the specific areas of the business that carry the highest competition law risk — sales team pricing practices, procurement processes, trade association participation, distribution arrangements, and market-dominant conduct
Compliance policies and procedures — drafting competition compliance policies that are clear, practical, and enforceable — covering the specific conduct most relevant to the business’s activities
Staff training and awareness — developing training programmes for directors, senior managers, sales teams, and procurement staff — tailored to the specific risks they face in their roles
Compliance monitoring and audit — advising on systems for ongoing monitoring of business conduct and periodic compliance audits to identify emerging risk areas
Escalation and reporting procedures — establishing clear internal processes for escalating potential competition law concerns to legal counsel before they become enforcement issues

Distribution and Commercial Agreements — Competition Law Review

Distribution agreements, supply contracts, licensing arrangements, and franchise agreements frequently contain provisions that carry competition law risk under the Competition Act 2010. Provisions that are commonly reviewed include: exclusive supply and exclusive purchase arrangements; resale price maintenance (both minimum and maximum pricing); territorial restrictions; customer allocation restrictions; non-compete obligations; and most-favoured-nation (MFN) clauses.

We review commercial agreements for competition law compliance, advise on the risk profile of specific provisions, and draft compliant alternatives that achieve the legitimate commercial objectives of the agreement without unnecessarily raising competition law concerns. We pay particular attention to the vertical agreement safe harbour thresholds — ensuring that agreements between parties with smaller market shares are structured to fall within the safe harbour where possible.

Trade and Industry Associations — Competition-Compliant Governance

Industry association activities are a significant source of competition law risk in Malaysia — MyCC has brought a number of its most high-profile enforcement actions against businesses on the basis of conduct at or facilitated by industry association meetings. The risk is particularly acute for activities involving pricing discussions, information sharing between competitors, collective decisions on business terms, and market allocation.

We advise trade and industry associations on competition-compliant governance, including: drafting competition law guidelines for association meetings and activities; training association secretariats and board members on the boundaries of permissible collective activity; reviewing proposed joint activities for competition law risk; and advising on the appropriate scope of information sharing within the association. We also advise individual member companies on the competition law risks of their participation in specific association activities.

M&A Transactions — Competition Law Considerations

Malaysia does not currently have a general merger control regime under the Competition Act 2010 — proposed amendments to introduce merger control have been under consideration for several years, with the timing of introduction still uncertain as at the date of this page. However, competition law is relevant to M&A transactions in Malaysia in several important respects.

During the transaction process, the exchange of commercially sensitive information between competing parties — even in the context of a bona fide transaction — can constitute an anti-competitive agreement under the Chapter 1 Prohibition if not properly managed. We advise on clean team protocols and information exchange safeguards for M&A transactions involving competitors. We also advise on sector-specific merger control requirements under the Communications and Multimedia Act 1998 (MCMC) and the Malaysian Aviation Commission Act 2015 (MAVCOM) where transactions in those sectors are being considered.

Competition Law Health Check

Many businesses are not certain whether their current practices comply with the Competition Act 2010 — and given the breadth of the Act’s application to all commercial activity in Malaysia, uncertainty is common. A competition law health check is a focused review of your business’s key commercial practices against the requirements of the Act — identifying specific risk areas, providing a practical risk assessment, and recommending the steps most likely to reduce your exposure.

A health check is particularly recommended for businesses that: have a significant market share in their sector; are active participants in industry associations; have distribution arrangements with exclusivity or pricing provisions; are involved in procurement processes with competitors; or have not previously received competition law training or advice.

Frequently Asked Questions

Does my business need a competition compliance programme?

Any business conducting commercial activities in Malaysia is subject to the Competition Act 2010 — regardless of size or sector (with limited exceptions). Businesses with significant market shares, those active in industry associations, those with distribution or supply arrangements that contain restrictive provisions, and those that regularly interact with competitors in commercial contexts face the highest competition law risk. A compliance programme is an investment in risk management — the cost of an investigation and potential penalty is far greater than the cost of proper compliance advice. Contact us for a competition law health check tailored to your business.

Are there competition law risks at our industry association meetings?

Yes — industry association meetings are one of the most common sources of competition law enforcement risk in Malaysia. Discussions between competing members about pricing, commercial terms, market conditions, or future business strategy — even informal discussions outside the formal agenda — can constitute an anti-competitive agreement or concerted practice under the Chapter 1 Prohibition. We advise associations and their members on competition-compliant governance and on the specific activities that carry the highest risk.

What is resale price maintenance and is it legal in Malaysia?

Resale price maintenance (RPM) involves a supplier setting minimum or fixed resale prices that its distributors or retailers must charge to end customers. Under Malaysian competition law, RPM in a vertical agreement is not per se illegal — unlike in some other jurisdictions. However, MyCC has indicated that it takes a strong stance against minimum RPM and may treat it as a per se infringement in practice. Maximum pricing and recommended retail pricing may also attract scrutiny where they serve as focal points for downstream collusion. We advise on the competition law risk profile of specific pricing provisions in distribution agreements.

We are acquiring a competitor. Do we need competition law advice?

Yes. Even though Malaysia does not currently have a general merger notification requirement under the Competition Act, competition law is relevant to M&A transactions involving competitors in several ways: information exchange during due diligence must be carefully managed to avoid constituting an anti-competitive agreement; sector-specific merger control rules apply in communications, media, and aviation; and the post-merger market structure should be assessed for Chapter 2 dominance implications. We advise on competition aspects of M&A transactions at every stage.

What does the proposed merger control regime mean for my business?

Malaysia has been developing a general merger control regime under proposed amendments to the Competition Act — under which mergers that result in a substantial lessening of competition in any Malaysian market may be required to be notified to and approved by MyCC before completion. As at the date of this page, the amendments have not yet been enacted. We advise on the current position, monitor legislative developments, and advise clients on how to prepare for the introduction of merger control. Contact us for the latest update on the status of the proposed amendments.

Speak to a Competition Lawyer Now!

Whether you need a competition compliance programme, a health check of your existing practices, or advisory support on a specific commercial arrangement, contact NZSK for practical and commercially focused trade mark legal advice. Contact us to arrange a consultation.