KUALA LUMPUR: The Malaysia Competition Commission (MyCC) expects to share the highly anticipated final decision for anti-competitive conduct by five chicken feed millers, before the end of the year.
In August 2022, MyCC issued a proposed decision against five enterprises for infringing section 4 of the Competition Act 2010 (Act 712) by entering into anti-competitive agreements and/or concerted practices in increasing the price quantum of poultry feed that contains soybean meal and maize as its main ingredients, between early 2020 and mid 2022.
The five are Dindings Poultry Development Centre Sdn. Bhd, FFM Bhd, Gold Coin Feedmills (Malaysia) Sdn. Bhd, Leong Hup Feedmill Malaysia Sdn. Bhd, and PK Agro-Industrial Products (M) Sdn. Bhd.
At the time MyCC said, poultry feed is a major contributor to the cost of poultry farming, contributing about 72.8 per cent of the total cost.
"Hence, where competition is distorted in the poultry feed market, the entire supply chain in the industry would be affected. Consumers, being at the end of that supply chain, are most affected," MyCC said.
According to MyCC in a statement today, the involved parties have submitted both oral and written representations, and they are currently reviewing the representations.
MyCC's statement was issued following the 12th special committee on competition meeting, which brought together representatives from the Malaysian Communications and Multimedia Commission (MCMC), the Energy Commission (EC), the National Water Services Commission (SPAN), the Central Bank of Malaysia (BNM), the Securities Commission Malaysia (SC), the Intellectual Property Corporation of Malaysia (MyIPO), the Companies Commission of Malaysia (SSM) and the Malaysian Aviation Commission (Mavcom).
The special committee of key sectoral regulators meet to discuss competition-related developments and chart the way forward in facilitating the harmonisation of competition provisions in the respective sectoral legislations.
Among the cases highlighted by MyCC was the recent appeal result for its first bid rigging cartel decision.
In September 2023, the Competition Appeal Tribunal (CAT) upheld MyCC's decision to fine eight companies RM1.55 million for rigging the bids on four government procurements valued at RM1.93 million.
The most interesting part of the appeal decision by CAT is that the losing cartel group can be held liable for infringing Section 4 of the Competition Act 2010 despite not being awarded the contract.
The case marked the first-ever final judgement for the quasi legal entity for collusion by bid cartels.
On the legislative front, MyCC said it is still actively carrying out its activities on the proposed amendments to the Competition Act 2010, in particular its plan to introduce the merger control regime.
MyCC said it will ensure that the amendments will go through soon especially in light of the planned merger of Sime Darby and UMW, which will make Sime Darby as the leading automotive player and the expected acquisition of FoodPanda by Grab.
The introduction of the merger control regime will enable MyCC to address the complexities emerging from such merger that will have implications on market dynamics and competition.
Acting domestic trade and cost of living minister Armizan Ali recently said that the MyCC would amend both the Competition Act 2010 (Act 712) to introduce a merger control regime that will empower MyCC to take early intervention actions (ex-ante) against the formation of new cartels or monopolies through the control of merger activities.
Armizan said with the amendment, any company found guilty of involvement with a cartel could be subject to financial penalties of up to 10 per cent of their company's total revenues.
If it involves government procurement, they can also be blacklisted from participating in government tenders in the future.