MyCC chairman Idrus Harun said the enterprises were accused of violating Section 4 of the Competition Act 2010, which relates to the prohibition of “horizontal and vertical agreements”.

Utusan Malaysia quoted him as saying a MyCC investigation found that a proposal to raise childcare service fees was allegedly not only discussed, but approved by all the enterprises in an association meeting.

“The decision was then relayed to all association members and other childcare centre owners via the issuance of a circular.

“MyCC finds this action was intended to block and stifle competition in the provision of childcare services in Kuala Lumpur and Selangor,” he said.

Idrus added that the “proposed decision” issued by MyCC was still in the preliminary findings stage.

He said as such, it could not be assumed that any of the enterprises mentioned in the “proposed decision” had conclusively violated the Act yet.

“As provided for in the Act, all the enterprises named in the proposed decision were informed yesterday of the penalties and orders proposed by MyCC. These enterprises may present their written representations to MyCC within 30 days of receiving the proposed decision,” he said.

Idrus said the enterprises could also present their oral representations to MyCC on a date that would be set later.

“MyCC will only issue its final decision after considering the enterprises’ representations and the evidence obtained during the investigative process,” he said.