KUALA LUMPUR (Dec 26): Malayan Flour Mills Bhd (MFM) said the recent decision by the Malaysia Competition Commission (MyCC) regarding an alleged price-fixing infringement with the imposition of a RM70.02 million financial penalty on its 51%-owned joint venture (JV) unit is “without merit”.

The group and the JV unit Dindings Poultry Development Centre Sdn Bhd “strongly challenge” MyCC’s finding of the said infringement and are in consultation with an external legal counsel to take the “necessary and appropriate action” to appeal the decision and apply for a stay of the decision in the interim, according to its stock exchange filing on Tuesday (Dec 26).

MFM said Dindings Poultry received MyCC’s notice on Dec 22, where the authority maintained its finding of price-fixing infringement with the imposition of a financial penalty of RM70.02 million.

Dindings Poultry is directed to cease and desist from participating and engaging in the anti-competitive agreement in relation to any discussion on price-related matters on poultry feed, and to submit a monthly report on changes in poultry feed prices.

MyCC also required Dindings Poultry to review and enhance its existing competition law compliance training programme and to enrol all employees and board members involved directly in pricing determination of poultry feed price in such a programme.

MyCC had investigated Dindings Poultry and four other feedmillers for allegedly colluding in a "chicken feed cartel" to fix poultry feed prices.

The total penalties imposed on the five companies amounted to RM415.5 million, the largest amount of fines that the quasi-judicial body has ever imposed in its 12-year history.

Last Friday, PPB Group Bhd said its 80%-owned subsidiary, FFM Bhd, will challenge MyCC’s findings of a price-fixing infringement by the company involving poultry feed.

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