Competition Law

RM415 Million Penalty Against Chicken Feed Companies for Anti-Competitive Behaviour

On 22 December 2023, the Malaysian Competition Commission ("MyCC") issued a hefty fine totalling RM415 million, against 5 companies for violating Section 4 of the Competition Act 2010. This is the largest amount of financial penalty that the MyCC has imposed in the 12 years since its inception.

Section 4 of the Competition Act 2010 ("Act") essentially prohibits enterprises from entering into either a horizontal or vertical agreement(s), which has the object or effect of significantly preventing, restricting or distorting competition in any market for goods and services. Upon the finding of an infringement, the MyCC has the power under Section 40 of the Act to require the infringement to be ceased immediately, including specifying steps to be taken by the infringing companies to end such infringement. It may also impose a financial penalty not exceeding 10% of the worldwide