KUALA LUMPUR: The Malaysia Competition Commission (MyCC) has welcomed the unanimous decision by the Competition Appeal Tribunal (CAT) to dismiss all appeals by several feed mill companies against MyCC's December 2023 decision on price-fixing of chicken feed.
In a statement on Wednesday (Feb 11), MyCC said the appeals were filed by Leong Hup Feedmill Malaysia Sdn Bhd, Dindings Poultry Development Centre Sdn Bhd, FFM Berhad and Gold Coin Feedmills (M) Sdn Bhd over their infringement of Section 4 of the Competition Act 2010.
"The CAT agreed with MyCC's decision that these companies coordinated among themselves to fix the amount by which the prices of chicken feed would be increased.
"Chicken feed is a key input in poultry farming, and any coordination on price increases can affect the cost of producing chicken and, ultimately, the prices paid by consumers," it said.
After reviewing all documents and hearing arguments from both sides, MyCC said that the CAT found that MyCC's decision was supported by strong evidence showing coordination on price increases during three separate periods between Jan 31, 2020 and June 30, 2022.
It said the CAT confirmed that MyCC had correctly applied the provisions in the Competition Act 2010 and that agreements between competitors to fix prices are automatically considered harmful to competition.
According to MyCC, the CAT upheld all financial penalties and directions imposed, ruling that the penalties were within the legal limit and appropriate given the seriousness of the infringements.
"The CAT saw no reason to reduce the penalties and further affirmed the aggravated penalty imposed on one of the companies for disrupting the investigation process," it stated.
The CAT also rejected the companies' arguments that MyCC had acted unfairly, without basis or in breach of due process, confirming that the commission had conducted its investigation within its legal powers under the Competition Act 2010 and had complied with proper procedures throughout.
Meanwhile, MyCC chief executive officer Datuk Iskandar Ismail said the unanimous decision was a strong affirmation of its role in protecting healthy competition in Malaysia.
"Markets function best when businesses compete honestly and independently. When competitors coordinate on prices, it harms the competitive process and can negatively impact consumers and the wider economy," he said.
Iskandar said MyCC would continue to monitor the conduct of the companies involved, as well as other market players, to ensure full compliance with the Competition Act 2010.
He added that MyCC remains committed to defending its decision in this case and to taking firm action against anti-competitive conduct to protect businesses and consumers in Malaysia. – Bernama
