KUALA LUMPUR (March 11): The Malaysia Competition Commission (MyCC) has last month filed an originating summons (OS) at the High Court against four feedmillers, seeking for the court to enforce a financial penalty of some RM367 million that the commission had imposed on the feedmillers in 2023.
On Feb 11 this year, the four companies — Leong Hup Feedmill Malaysia Sdn Bhd, Dindings Poultry Development Centre Sdn Bhd, FFM Bhd, and Gold Coin Feedmills (M) Sdn Bhd — had their appeals dismissed by the Competitions Appeal Tribunal (CAT).
Following that, MyCC then filed the OS against them, seeking leave, pursuant to Section 59 of the Competition Act 2010, that the appeal decision following the infringement decision by CAT be registered and enforced on the feedmillers.
Further, MyCC is seeking a judgement to be entered against the four companies on the terms of the infringement and that they pay the imposed financial penalty, with interest at 5% from the date of filing the action.
To date, the companies have failed to pay the financial penalty, resulting in the OS being filed, the court document states.
The Edge has sighted the OS filed by MyCC against Leong Hup, which was filed at the High Court on Feb 13, through Messrs Jason Teoh & Partners, where a case management of the matter was done along with Dindings Poultry on Monday (March 9) before High Court Senior Assistant Registrar Nur Shasha Hidayah Nor Azahar.
When contacted by The Edge on Wednesday (March 11), MyCC chief executive officer Datuk Iskandar Ismail confirmed the filing of the OS against the four companies to have the CAT decision enforced.
The sum of RM367 million is said to be the largest fine in Malaysian history for price-fixing in the chicken feed industry — where the four above-mentioned companies and another are said to have commanded a 40% share of the market.
Of the RM367 million, Leong Hup, which has entered an appearance in the OS and is represented by Messrs Wen & Co, had been given a RM157.47 million penalty.
The financial penalty was imposed on the four companies on Dec 11, 2023, for having infringed Section 4 of the Competition Act 2010 by participating in anti-competitive agreements and/or concerted practice.
They subsequently obtained a stay of the MyCC decision pending their appeal to CAT.
As a result of the CAT decision last month, the four companies filed separate judicial review applications at the High Court against the CAT decision, and earlier this month, wherein a bourse filing announcement, they obtained an ad interim (temporary) stay order from the court, pending an inter partes (involving both sides) hearing of an earlier interim stay order.