Competition Law Update: Amendments to the Competition Act 2010 and the Competition Commission Act 2010

The Competition (Amendment) Bill 2026 and the Competition Commission (Amendment) Bill 2026 (“the Bills”) were passed in the House of Representatives on 6 July 2026 and are to be tabled before the Senate in its second meeting of the term, starting 20 July 2026. 

The Bills represent the most significant structural overhaul of the Competition Act 2010 and Competition Commission Act 2010 (“the Competition Acts”) since the Competition Acts came into effect. 

The bulk of the amendments in the Bills seek to significantly increase the Malaysia Competition Commission (“MyCC”)'s enforcement powers and are likely to impact the existing commercial strategies and compliance policies of enterprises once enacted into law.

A summary of some key proposed changes to the Competition Acts is set out below:

• Removal of References to “Horizontal” and “Vertical” Prohibited Agreements.

The references to "horizontal" and "vertical" agreements in the Competition Acts have been removed and replaced with “any agreement” that has the object or effect of significantly preventing, restricting or distorting competition. In this regard, agreements that have previously relied on “safe harbours” applicable to certain vertical agreements may now face stricter scrutiny and may need to be reviewed for compliance.

• New Power to Require the Provision of Information for Market Reviews.

Under a new rule, MyCC can now compel companies to provide information, data, and documents when conducting a "market review" into an industry. This power to request information is wide with no strict rules on the type of information MyCC can request. 

• Narrow Window to Offer Undertakings.

An enterprise under investigation by MyCC will only be able to offer undertakings (to do or refrain from doing anything) without an admission of liability until MyCC issues its Proposed Decision. If an enterprise misses that timeframe, its remaining option to mitigate damages is via a new settlement mechanism which offers a reduction in fines of up to 40% but requires a formal admission of liability. It must be noted that while the chance of up to 40% discount in fines may appear compelling, the formal admission of liability in a settlement with MyCC may result in follow-on private action for damages.

• Introduction of Whistleblower Protections and Financial Rewards for Informers. 

Witnesses in any proceedings before the MyCC, the Competition Appeal Tribunal (“COMPAT”) or in any civil or criminal proceedings pursuant to the Competition Act 2010 shall not be obliged or permitted to disclose the information or the substance of the information received from an informer or to state any matter which might lead to the discovery of the informer. 

Informers may also be rewarded by MyCC for information that results in the discovery of any infringement of the Competition Act 2010. Given the foregoing, it is even more important now for enterprises to proactively implement or review existing internal whistleblowing channels and compliance programs.

• Increased Powers to Impose Charges/Fees.

MyCC would have the power to impose late payment charges on the financial penalties imposed by MyCC as well as the power to impose fees, administrative charges or any other charges for the services rendered by MyCC for the purposes of performing its functions or exercising its powers. There does not appear to be any actual figure, number or limit to MyCC's power to impose the said charges and/or fees in the Bills. This uncapped power means that until subsidiary regulations or guidelines clarify the fine/charge limits, any engagement with MyCC (whether dispute-related or not) could result in significant financial exposure for the enterprise.

• Express appeal provision.

Currently, there is no express provision for appeals against the decisions of COMPAT. Accordingly, parties have been compelled to go by way of judicial review although the courts held that MyCC does not have a right to apply for judicial review. The new legislative amendments have expressly inserted a right of appeal for both enterprises and MyCC to appeal against COMPAT decisions to the High Court on questions of law or the quantum of the financial penalty.  

The Bills notably do not introduce merger control regulations in Malaysia. The absence of a comprehensive merger control regime in the Bills is surprising, given the numerous press statements by MyCC and the Minister of Domestic Trade and Costs of Living, Datuk Armizan bin Mohd Ali, on the imminent introduction of merger control regulations. In any event, this omission means that for now, M&A timelines and transactions will remain free from mandatory MyCC notification requirements. 

Please note that while Malaysia still does not have a general merger control regime, there are specific/sectoral merger control regime(s) applicable to commercial activities relating to the aviation, multimedia and communication, and energy industries.

Should you have any enquiries, you may direct them to Mr. Anand Raj at anand@shearndelamore.com and Ms. Jeevitha Thurai at jeevitha@shearndelamore.com of our Competition Law and Antitrust practice group. 

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