FMT:
Malayan Flour Mills, Dindings Poultry to challenge RM70mil price-fixing penalty
The poultry feed manufacturers claim the decision by the Malaysia Competition Commission, or MyCC, was without merit.
Five poultry feed manufacturers were fined almost RM416 million in total on Dec 22 for forming a cartel and raising their prices, which led to the higher price of chicken.
KUALA LUMPUR: Malayan Flour Mills Bhd and its joint venture company, Dindings Poultry Development Centre Sdn Bhd, have engaged legal help to challenge the decision by the Malaysia Competition Commission (MyCC) to impose a penalty of RM70 million for price-fixing.
In a Bursa Malaysia filing today, the companies said MyCC’s finding of infringement was without merit.
“Malayan Flour Mills and Dindings Poultry Development Centre will take the necessary action to appeal the decision and apply for a stay of the decision in the interim,” it said.
On Dec 22, MyCC said it had imposed a penalty of nearly RM416 million against five poultry feed manufacturers for infringing Section 4 of the Competition Act 2010 (Act 712) by forming a price-fixing cartel and raising their prices almost simultaneously, which led to the higher price of chicken.
“The companies were Leong Hup Feedmill (M) Sdn Bhd, FFM Bhd, Gold Coin Feedmills (M) Sdn Bhd, Dindings Poultry Development Centre Sdn Bhd and PK Agro-Industrial Products (M) Sdn Bhd,” it said.
The commission 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 these companies had employed a well-thought-out strategy to create the illusion of rising poultry feed costs being due to hikes in raw material costs.
KUALA LUMPUR: Malayan Flour Mills Bhd and its joint venture company, Dindings Poultry Development Centre Sdn Bhd, have engaged legal help to challenge the decision by the Malaysia Competition Commission (MyCC) to impose a penalty of RM70 million for price-fixing.
In a Bursa Malaysia filing today, the companies said MyCC’s finding of infringement was without merit.
“Malayan Flour Mills and Dindings Poultry Development Centre will take the necessary action to appeal the decision and apply for a stay of the decision in the interim,” it said.
On Dec 22, MyCC said it had imposed a penalty of nearly RM416 million against five poultry feed manufacturers for infringing Section 4 of the Competition Act 2010 (Act 712) by forming a price-fixing cartel and raising their prices almost simultaneously, which led to the higher price of chicken.
“The companies were Leong Hup Feedmill (M) Sdn Bhd, FFM Bhd, Gold Coin Feedmills (M) Sdn Bhd, Dindings Poultry Development Centre Sdn Bhd and PK Agro-Industrial Products (M) Sdn Bhd,” it said.
The commission 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 these companies had employed a well-thought-out strategy to create the illusion of rising poultry feed costs being due to hikes in raw material costs.
Wakakaka... I have some idea about this.
ReplyDeleteI leave it to the courts to decide whether there is basis for the accusations ; suffice to say these guys are not exactly Kosher.