Following a series of discussions with the Malaysia Competition Commission (MyCC), Nestle Sdn Bhd has withdrawn its application for individual exemption.

In a statement issued today, MyCC said Nestle had previously filed an individual exemption application to exclude its pricing policy called the Brand Equity Protection Policy (BEPP) from the Competition Act 2010 (CA2010).

Nestle’s pricing policy was a major concern for the MyCC as it has elements of Resale Price Maintenance (RPM), an anti-competitive conduct that prevents resellers from setting their prices independently, potentially leading to increased prices for consumers.

"While MyCC recognises the rights of Nestle to promote and enhance its brand equity under the BEPP, the pricing policy as contained in the BEPP was likely to infringe section 4(1) of the CA2010 as it essentially constitutes a RPM.

"In this regard, we have requested Nestle to dismantle its pricing policy contained in the BEPP," said MyCC’s Chairman Tan Sri Siti Norma Yaakob.

MyCC said Nestle has agreed to comply in dismantling the said pricing policy and issued notices to the trade on the same.