Competition Tribunal Upholds Fines Against Chicken Feed Firms, MyCC Wins Appeal on Price-Fixing Case
KUALA LUMPUR, Feb 11 — The Competition Appeal Tribunal has unanimously dismissed appeals by several chicken feed manufacturers, affirming the earlier ruling by the Malaysia Competition Commission (MyCC) over price-fixing violations.
In a statement, MyCC confirmed that appeals filed by Leong Hup Feedmill Malaysia Sdn Bhd, Dindings Poultry Development Centre Sdn Bhd, FFM Berhad and Gold Coin Feedmills (M) Sdn Bhd were rejected in full.
The companies were previously found to have breached Section 4 of the Competition Act 2010 by coordinating increases in chicken feed prices during three separate periods between January 31, 2020 and June 30, 2022.
According to MyCC, the tribunal agreed that substantial evidence demonstrated coordination among competitors to fix the amount of price increases. Chicken feed is a critical cost component in poultry production, and any manipulation of pricing structures can directly influence production costs and ultimately retail chicken prices.
Penalties Confirmed in Full
The tribunal ruled that MyCC had correctly applied the provisions of the Competition Act 2010, reaffirming that agreements between competitors to fix prices are inherently harmful to market competition.
All financial penalties and directives previously imposed were upheld, with the tribunal determining that the fines were proportionate and within statutory limits given the seriousness of the infringements.
The tribunal also dismissed claims that MyCC had acted unfairly or breached due process, confirming that the investigation was conducted within its legal authority and in compliance with procedural requirements. An aggravated penalty imposed on one company for obstructing the investigation process was likewise maintained.
MyCC chief executive officer Datuk Iskandar Ismail described the unanimous ruling as a strong endorsement of the commission’s enforcement mandate.
“Markets function best when businesses compete independently. Coordinated pricing undermines competition and can harm consumers as well as the broader economy,” he said.
He added that MyCC will continue to monitor the conduct of the companies involved and other industry players to ensure ongoing compliance with the Competition Act 2010.
The tribunal’s decision sends a clear signal that anti-competitive agreements will be dealt with firmly, reinforcing regulatory oversight in Malaysia’s agricultural supply chain and consumer markets.
-wilayah.com.my
