Company seeks review over denial of stay in RM70mil ‘cartel’ fine

 

In December last year, Malaysia Competition Commission imposed a penalty of nearly RM416 million against five poultry feed manufacturers for forming a price-fixing cartel.

PETALING JAYA: 

Malayan Flour Mills Bhd’s joint venture company, Dindings Poultry Development Centre Sdn Bhd, has filed for leave to seek a judicial review of the Competition Appeal Tribunal’s decision to deny its request for a stay on a RM70 million penalty.

In a bourse filing today, Malayan Flour Mills said the High Court has fixed the hearing for the leave application on Jan 2.

It said Dindings Poultry filed the application on Dec 16 against the tribunal’s decision and to seek a stay of the payment of the penalty.

In December last year, Malaysia Competition Commission (MyCC) imposed a penalty of nearly RM416 million against five poultry feed manufacturers for infringing Section 4 of the Competition Act 2010 by forming a price-fixing cartel and raising their prices almost simultaneously.

Besides Dindings Poultry, the other companies are Leong Hup Feedmill (M) Sdn Bhd, FFM Bhd, Gold Coin Feedmills (M) Sdn Bhd, and PK Agro-Industrial Products (M) Sdn Bhd.

MyCC said its investigation uncovered evidence of the companies making identical increments in poultry feed prices from January 2020 to June 2022.

This was in addition to the finding that the companies had employed a well-thought-out strategy to create the illusion of rising poultry feed costs arising from hikes in raw material prices.

According to The Edge, Leong Hup Feedmill and FFM have also filed for a judicial review following the dismissal of their requests for a stay on the penalties imposed by MyCC.

Malayan Flour Mills said MyCC filed an application on Dec 18 to enforce the penalty against Dindings Poultry pursuant to Section 42 of the Competition Act 2010.

The company will take the necessary and appropriate action to challenge the application filed by MyCC, it said. - FMT