MyCC gives final time extension to Leong Hup, PPB and MFM in alleged poultry feed price-fixing case

KUALA LUMPUR (Dec 19): The Malaysia Competition Commission (MyCC) has granted the units of Leong Hup International Bhd, PPB Group Bhd, and Malayan Flour Mills Bhd (MFM) the final extension to submit its representation in response to the alleged price-fixing of poultry feed case.

In separate filings to Bursa Malaysia on Monday (Dec 19), Leong Hup’s wholly-owned subsidiary Leong Hup Feedmill Malaysia Sdn Bhd (LFM), MFM’s partially-owned Dindings Poultry Development Centre Sdn Bhd (DPDC), and PPB’s 80%-owned FFM Bhd were given the fourth and last extension until 12.00 noon on Jan 31, 2023.

“They have been given three extensions, and this will be the final. There will be no more extensions,” Iskandar Ismail CEO of MyCC told The Edge.

If found to have infringed the Competition Act 2010, a collective RM273.85 million worth of financial penalties could be imposed on the subsidiaries.

MyCC has provisionally found that the three companies have infringed Section 4 of the Competition Acts 2010 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.

In a filing in August this year, LFM said MyCC proposed to impose a financial penalty of RM157.47 million on the company if it is found to be infringing the Act. Separately, MFM said that MyCC has proposed to impose a financial penalty of RM70.02 million if DPDC is found to have infringed the Competition Act 2010.

In response, MFM said DPDC vehemently denies the allegation of any infringement of the provisions of the Act, as mentioned in the proposed decision.

Meanwhile, MyCC had proposed to impose a financial penalty of RM46.36 million on FFM.

MyCC said in August that it would only issue its final decision on whether there is a finding of infringement or non-infringement of the Competition Act 2010 after hearing and considering the representations and the evidence gathered during the investigation.

The finding of an infringement will allow MyCC to impose a financial penalty of up to 10% of the parties’ worldwide turnover during the infringement period. On top of the penalty, MyCC has the discretion to impose any other appropriate directives that MyCC sees fit.