KUALA LUMPUR, Sept 6 — In the first decision of its kind in the country, Malaysia’s anti-trust regulators today tentatively judged a contentious equity swap between rival airlines AirAsia and Malaysia Airlines to have breach the Competition Act 2010.

In its decision today, the Malaysia Competition Commission (MYCC) said it will impose a fine of RM10 million each for both firms, according to a statement released on its website today.

The newly-established commission had been investigating the so-called “Comprehensive Collaboraton Framework” involving the low-cost airline and the country’s flag carrier that had drawn widespread allegations of possible collusive and monopolistic behaviour.

The newly-established commission had been investigating the so-called “Comprehensive Collaboraton Framework” involving the low-cost airline and the country’s flag carrier that had drawn widespread allegations of possible collusive and monopolistic behaviour that was a violation under section 4(2) of the Act.

“Market sharing is considered a serious infringement under the Act as it is deemed to have the object of significantly preventing, restricting, or distorting competition in any market for goods and services,” said Tan Sri Siti Norma Yaakob, the chairman of the commission.

“When businesses agree to share markets, they are agreeing to stop competing at the expense of the consumers.”

Although the arrangement charted by sovereign wealth firm Khazanah Nasional and Tune Air, the main stakeholders of AirAsia, was later unravelled following vociferous complaints from lawmakers, airline employees and consumers, MYCC had still pursued its investigations on whether the equity swap was harmful towards air travellers.

Today, the commission said the RM10 million penalty was less than a tenth of either firm’s annual revenue and was mitigated by the co-operation given to its investigators.

Both firms have 30 days to respond to MYCC’s ruling today.

MAS and AirAsia had entered into the agreement in August 2011, which controversially saw key executives from the rivals sitting on one another’s board of directors.

This had led to allegations that this would lead to an effective monopoly of domestic air routes by both firms.

Monopolies are not strictly illegal in Malaysia, but anti-competitive behaviour was made an offence following the enactment of the Competition Act.

The share swap was later abandoned in May 2012 following mounting protests from the MAS Employees Union and its members, who voiced the suspicions over the motives of AirAsia executives on the MAS board.

MYCC was established in 2011 with the express purpose of enforcing the Competition Act.