My E G Services Berhad : Others

(Unless otherwise stated, all definitions and terms used in this announcement shall have the same meaning as defined in the announcement dated 6 October and 8 October 2015)

The Company wishes to further announce that the Company had received a Notice of Decision by MyCC which was served to the Company and its wholly-owned subsidiary MyEG Commerce on 24 June 2016 which has determined that MyEG had infringed Section 10 (2)(d)(iii) of the Competition Act, 2010 by abusing its dominant position in harming competition in the downstream market in which MyEG Commerce is participating as an insurance agent for the online PLKS renewal applications ('the Decision').

Due to the Decision, MyCC has imposed the following on MyEG:-

1. A financial penalty amounting to RM2,272,200.00;
2. MyEG to cease and desist immediately from imposing different conditions to equivalent transactions in the processing of Mandatory Insurances for online PLKS renewal applications;
3. MyEG to provide an efficient gateway for all its competitors in the market for the sale of the Mandatory Insurances and allows the other competitors to compete at the same level within sixty (60) days from the date of the Decision; and
4. MyEG to provide an undertaking in the form and manner acceptable to MyCC, to be fully compliant with the General Insurance Association of Malaysia rules and regulations within sixty (60) days from the date of Decision.

The Decision is not expected to have any significant financial and operational impact to the Company.

The Board of Directors will review the Decision with the Company's legal counsel and intends to file in an appeal to MyCC with the Company's defence.

This announcement is dated 24 June 2016