The Malaysia Competition Commission (MyCC) has requested Shopee to provide an explanation of its first and last mile delivery issues, which has been raised by both consumers and merchants alike. The online shopping platform is given until the end of October to respond to the agency’s enquiries.
MyCC says it had initially engaged with Shopee on 19 October due to the escalating public outcry against its certain practices. It added that the meeting was also held in order to “gain a better understanding of the nature of the online marketplace platform industry and the logistic industry that provides the first and last mile delivery services to these platforms.”
The agency notes that it welcomes and acknowledges the innovation by industry players that has drastically improved the online shopping experience for all Malaysians. However, it believes that these platforms should also be required to be mindful of their respective conducts that may raise any competition concerns, as well as potentially causing harm to their users. In regards to Shopee, MyCC is expecting the platform to provide the justification to its conduct, as well as a detailed account on how it will internally address the first and last mile delivery issues without further jeopardising users’ interest before the assigned deadline.
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In a press release, MyCC CEO Iskandar Ismail states the agency will ensure that online marketplace platforms provide a conducive environment for onboarded users. “We understand the current challenges that the industry players are facing,” he said. “However, it should not stop them from providing the best services to the users.”
Ismail assured that the Malaysia Competition Commission will continue to closely monitor all industry players’ future actions to address the recent issues and other competition concerns related to their platforms. Any enterprise found infringing the law will invoke the agency’s investigation and enforcement powers against them, he added.
(Source: MyCC [press release])
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