}

20 April 2022

On 1 February 2022, the Malaysia Competition Commission (“MyCC”) announced that it had set up a special task force to investigate any competition related issues in the chicken and chicken eggs industry and warned that it would not hesitate to take stern action based on its powers under the Competition Act 2010 (“Act”) towards any party that engages in cartel or abuse of dominant power or monopoly activities. The announcement was made following directives given to the MyCC by the National Action Council on Cost of Living in a special meeting that was chaired by the Prime Minister, YAB Dato’ Sri Ismail Sabri Yaakob.

On 9 March 2022, the MyCC announced that it had conducted raids and taken statements from the relevant enterprises and persons in the industry, and revealed that there are parties who have indicated their willingness to explore a leniency application under section 41 of the Act to cooperate with MyCC on the same.

For context, section 41 of the Act allows for leniency, with a reduction of up to a maximum of 100% of any penalties to any enterprise that:

  • admits its involvement in an infringement of any prohibited horizontal agreement under subsection 4(2) of the Act; and
  • provides information or other form of co-operation to the MyCC which significantly assisted, or is likely to significantly assist, in the identification or investigation of any finding of an infringement of any prohibition by any other enterprises.