KUALA LUMPUR – The Competition Commission (MyCC) has issued RM175 million in fines against food companies engaged in cartel and monopoly activities, as announced by the Domestic Trade and Cost of Living Ministry.
In a parliamentary written response, the ministry reported that these penalties include RM155.66 million imposed on 250 cartel-affiliated companies, with an additional RM19.94 million levied on two monopolistic entities.
Furthermore, the ministry stressed that MyCC has prioritised enforcement of the Competition Act 2010 in the food and agriculture sectors since the previous year.
“MyCC is unwavering in its commitment to addressing enterprises in these sectors involved in cartels or those who misuse their monopoly status, with zero bias or hesitation,” the ministry declared.
The response came in answer to a query by Datuk Mohd Suhaimi Abdullah (Langkawi-PN), who sought information about MyCC’s role and strategies for countering cartels and monopolies in the food and agriculture industries.
The ministry also highlighted the commission’s recent issuance of a preliminary decision against five chicken feed-manufacturing companies for their involvement in anti-competitive cartel practices, in violation of Section 4 of the act.
These companies, namely Dinding Poultry Development Centre Sdn Bhd, FFM Bhd, Gold Coin Feedmill (Malaysia) Sdn Bhd, Leong Hup Feedmill Malaysia Sdn Bhd and PK Agro-Industrial Products (M) Sdn Bhd, submitted a written representation on January 31. Subsequently, they engaged in hearings with MyCC in June and July.
“MyCC is expected to deliver its final verdict within this year. If found guilty, they will face financial penalties amounting to 10% of their working capital,” the ministry said.
In response to another inquiry by Suhaimi regarding amendments to the Competition Act, the ministry disclosed that these amendments are in the final stages and will be presented to Parliament early next year.
The proposed changes aim to boost MyCC’s investigative and enforcement capabilities, enhancing its effectiveness. Additionally, they will introduce a merger control framework, granting the commission the authority to proactively intervene in the formation of new cartels or monopolies. – October 12, 2023