Page 148 - The-5th-MCAIT2021-eProceeding
P. 148

the Malaysian Competition Act 2010 (MCA2020) excluded M &A control and MyCC unable to conduct a
        market study to determine its pre-merger or post-merger impact on the competition and consumers welfare
        (Ramaiah, 2020). However, 2019, MyCC’s found Grab abused its dominant position by imposing restrictive
        clauses  on  its  drivers  (disallowing  competitors  advertising)  that  undermine  new  entries  and  other  small
        enterprises to enter the E-haling industry in Malaysia. MyCC proposed a fine of RM86.8 million against Grab
        for (Jay&Antara, 2019) for abusive behaviour (Section 4 MCA2010) but the decision was set aside and granted
        leave for judicial review. The case displayed the lack of the regulator’s capacity building and legal tools to nab
        digital merger. And reflected difficulty to prove modus operandi in digitalized based firms because lacking the
        expertise in EA, SAD to gather the information for the legal proceedings against digital giants such as Grab.
        Thus,  MyCC,  national  competition  watchdog’s  parens  patriae  was  undermined  with  no  merger
        control(Ramaiah,2020) and lack of expertise in digital case.
           In Indonesian’s Antimonopoly and Unfair Business Competition (Law No.5/1999) found lex imperfecta,
        despite having merger control regulation, had to forgo Uber-Grab digital merger (Ramaiah, Sirait & Smith,
        2019). The decision queried, whether Indonesian Competition Commission(ICC) lack of regulation or lack the
        legal  tool  to  assess  the  impact  towards  digital  competition  in  Indonesia?  ICC  attempted  to  overcome  the
        regulatory gap by introducing ‘pre-notification procedure’ (Guidelines to measure M&A) for better process in
        future (KPPU, 2019) but again Gojek-Tokopedia merger took off reflecting the inherent weakness and lack of
        capacity building in identifying and regulating digital M&A in Indonesian. Meanwhile on later development
        PT Solusi Transportasi Indonesia (or ‘GRAB’ Indonesia) was nabbed (KPPU,2020July 02) for the violation
        Law No.5/1999 for abusive charges ‘special rental’ amounting to discrimination by monopoly for Grab App
        software application (KPPU, 2020, September) (Nugraha, 2020). But the decision got reversed by the Supreme
        Court of Indonesia for reasons of insufficient evidence and penalties did not reflect an effort to economic
        recovery in the middle of the pandemic. Hence, the decisions were critiqued as a victory fort for digital firms’
        atrocity and undermined the ICC. And it impairs the competition spirit in Indonesia (Fauzie,2021) because it
        undermines  new and small players (which  may  go unnoticed) development, and  survival compared to the
        dominant  players  better  equipped  digital  technology  and  investment,  besides  imposing  switching  costs  for
        people in sharing economy to move from one platform to another (Safiri, 2021).
           Meanwhile, technology companies in India, although revered for their innovation and efficiency, also not
        susceptible to anticompetitive motivated collusion, acquisition, and abuse of market power. Indian digital giants
        such as Uber, Ola and PayTM in India, market power marginalise the market by enticing users by subsidising
        their goods with their huge financial capital, by resorting into practices like deep discounting, cash-back offers
        and other schemes designed to attract new users and establish the network effect (Graham & Smith, 2014)
        initially  even  if  sustain  heavy  losses  for  years.  (Chakravartti  &  Mundle,  2017).  Digital  markets  employ
        algorithms  to  limit  competition  through  agreements,  concerted  practices,  and  other  subtle  means.  Such  as
        disguising the collusive agreement as an introductory offer by a new player, instead of appearing as systematic
        competitive strategies by using capital as their competition weapon, where eventually tipping in favour of the
        player, which might not have the most innovative product or service, but the one that can manage to obtain huge
        capital and entice as many users as possible through its introductory offers.  The Indian, Competition Act, 2002
        (ICA2002)  and  the  Competition  Commission  of  India  (CCI)  similarly  faced  with  difficulty  to  nab  for
        infringement, in the absence clear evidence to show agreement between platforms to coordinate or be any part
        of such agreement. Such as between drivers themselves, to delegate the pricing power to the platforms or cab
        aggregators (Peter & Singh, 2019). Meanwhile “abuse of dominance” cases on global technology giants like
        Google,  Amazon,  and  their  Indian  counterparts  like  Flipkart  (CCC,2014:  CCi,2019),  decisions  heavily
        influenced  by  European  Commission  (EC)  or  of  United  States  FTC/  DOJ  decisions  per  se  (Gouri,  2021).
        However, CCI in WhatsApp’s privacy policy and mandatory terms of service that gave users the option to
        optout  decided  that  “…in  a  data  driven  ecosystem,  the  CL  needs  to  examine  whether  the  excessive  data
        collection and the extent to which such collected data is subsequently put to use or otherwise shared have anti-
        competitive implications which require anti-trust scrutiny…” (CCI, 2021). Hence, CCI have similar issues in







        E- Proceedings of The 5th International Multi-Conference on Artificial Intelligence Technology (MCAIT 2021)   [135]
        Artificial Intelligence in the 4th Industrial Revolution
   143   144   145   146   147   148   149   150   151   152   153