EdwardNg

One of the most striking examples of MyCC’s enforcement capabilities came on 22 December 2023, when the Commission issued a record-breaking penalty of RM415 million against five major poultry feed millers in Malaysia. The case stands as the clearest example of how MyCC moves from quiet investigator to bold enforcer — especially when public interest is at stake.

In today’s episode, we’re taking a closer look at the Malaysia Competition Commission, or MyCC — the body at the heart of competition regulation in this country. Is it just a policy adviser? Or is it a true market enforcer with teeth? Let’s find out.

Have you ever wondered who ensures that businesses in Malaysia play fair? That’s where MyCC, or the Malaysia Competition Commission, comes in. Established under the Competition Commission Act 2010, MyCC is the independent body tasked with enforcing Malaysia’s Competition Act 2010, which is the primary legislation governing fair market practices in the country.

1. Varied Approaches in Cartel Investigations and Enforcement
The Malaysia Competition Commission (MyCC) employs different investigative approaches when dealing with cartels and enforcing the Competition Act 2010. Unlike a one-size-fits-all enforcement model, MyCC tailors its investigative strategies based on the industry, severity of the violation, and available evidence.
Key Observations on MyCC’s Enforcement Trends:
• Sector-Specific Focus: MyCC prioritizes high-impact industries, particularly those affecting consumer welfare, such as food and agriculture.
• Public Complaints as a Trigger: The Commission actively monitors market behavior and responds to public concerns about cartel activities.
• Collaboration with Other Authorities: MyCC works closely with sectoral regulators and government agencies to strengthen cartel detection and enforcement.
• Proactive Market Surveillance: Instead of waiting for formal complaints, MyCC monitors price fluctuations, business conduct, and industry reports to detect potential anti-competitive activities.
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2. Increased Scrutiny on the Food and Agriculture Sector
Why is MyCC Focusing on the Food Industry?
• Direct Impact on Consumers: Price-fixing or cartel arrangements in essential goods (e.g., chicken feed, rice, sugar, dairy) raise living costs.
• Market Vulnerability: The food and agriculture industries often have few dominant players, increasing the risk of collusion.
• Historical Enforcement Actions: Recent cases indicate that MyCC has aggressively pursued anti-competitive conduct in this sector.
Notable MyCC Enforcement Actions in Food & Agriculture:
• Chicken Feed Price-Fixing Case (2023)
o MYR 415 million fine imposed on five major chicken feed millers for price collusion.
• Ongoing Investigations into Staple Food Supply Chains
o MyCC is actively monitoring and investigating over 500 companies suspected of cartel practices in food distribution and supply chains.

Over the past year, the Malaysia Competition Commission (MyCC) has intensified its cartel enforcement efforts, cracking down on price-fixing and bid-rigging activities. Two of the most significant enforcement actions were the largest price-fixing fine in MyCC history and a major bid-rigging investigation involving government tenders.
1. Record-Breaking Fine on Chicken Feed Millers for Price-Fixing
Final Decision: MYR 415 Million Penalty
• Date of Decision: 22 December 2023
• Industries Affected: Poultry & Livestock Feed Sector
• Companies Involved: Five major chicken feed millers
• Violation: Price-fixing arrangement
• Penalty: MYR 415 million (largest fine imposed by MyCC to date)
Key Findings from MyCC’s Investigation:
• Pricing coordination: The MyCC found that price fluctuations among the companies aligned with the dates of price announcements, suggesting collusion.
• Oral price exchanges: Witness testimonies revealed that competitors shared raw material pricing information during trade association meetings.
• Communication patterns: The enterprises engaged in discussions before implementing price changes, reinforcing the existence of a cartel arrangement.
Current Status:
• Legal challenge expected: Several companies have indicated their intent to appeal against MyCC’s decision.
• Significance: This case highlights MyCC’s strengthened approach to tackling anti-competitive agreements that directly impact food prices and consumers

The Malaysia Competition Commission (MyCC) is vested with broad investigative powers under the Competition Act 2010 (“Competition Act”). These powers are comparable to those of a police officer under the Criminal Procedure Code when investigating seizable offences. The MyCC can initiate investigations based on three primary triggers:
1. Initiation of Investigations
The MyCC can commence an investigation under the following circumstances:
• Own Initiative: If MyCC has reasonable suspicion that an enterprise has violated the Competition Act.
• Ministerial Directive: Upon instructions from the Minister of Domestic Trade and Cost of Living to probe a suspected infringement.
o Example: In 2019, MyCC was directed to investigate cartel activities in the roll-on/roll-off (RoRo) vehicle transportation services in Langkawi.
• Public Complaints: If a person or entity lodges a complaint regarding anti-competitive conduct, agreements, or an enterprise.

2. Key Investigative Powers of MyCC
The Competition Act confers extensive enforcement powers to MyCC, enabling it to gather evidence, inspect premises, and enforce compliance. These include:
i) Power to Order the Production of Documents and Information
• MyCC can issue written requests for documents, records, or information relevant to an investigation.
• Individuals may also be required to submit written statements explaining the contents of any document or information.
• Non-compliance (failure to disclose information, providing false or misleading statements, or omitting material facts) constitutes an offence under the Competition Act.
ii) Power to Search and Seize with a Warrant
• MyCC may obtain a warrant from the court to enter, search, and seize:
o Physical records, books, accounts, or documents;
o Computerized data and electronic records;
o Any other relevant material that could serve as evidence of an infringement.
• MyCC also has the authority to seal premises or containers that contain crucial evidence.
• Tampering with or removing MyCC’s seal is an offence under the Competition Act.
iii) Power to Conduct Unannounced Raids (Search Without a Warrant)
• MyCC can enter premises without a warrant if it believes that:
o Delays in obtaining a warrant would jeopardize the investigation;
o Evidence is at risk of being tampered with, destroyed, or removed.
• Refusal to grant MyCC access, or any attempt to obstruct, delay, or hinder the investigation, is considered an offence.
iv) Power to Access Computerized Data
• MyCC can demand access to electronic and digital records, regardless of whether they are stored:
o On a physical device (e.g., computer, hard drive, USB);
o On cloud storage or remote servers.
v) Power to Retain Original Documents
• MyCC has the authority to take and retain original copies of documents for as long as necessary for investigation and legal proceedings.

3. Legal Privilege and Protection
• Legal professional privilege applies to communications between external legal advisors and their clients.
• However, privilege does not extend to in-house counsel, meaning that legal advice provided internally within a company may still be subject to MyCC’s investigation.

4. Upcoming Amendments to MyCC’s Investigative Powers
Proposed amendments to the Competition Act, expected to be tabled in 2024, are set to expand MyCC’s enforcement powers, including:
• Issuance of Warning Letters: MyCC may soon have the statutory authority to issue official warnings before initiating enforcement action.
• Disclosure of Confidential Information: The amendments may allow MyCC to share confidential case information with foreign regulators under international agreements that Malaysia is a party to.

Conclusion
MyCC’s investigative authority under the Competition Act 2010 plays a critical role in detecting, preventing, and penalizing anti-competitive behavior in Malaysia. Businesses should ensure full compliance with competition laws to avoid legal risks, as failure to cooperate with MyCC’s investigations may lead to significant penalties.
With upcoming legislative amendments, MyCC’s enforcement scope is expected to grow, making it essential for companies to implement robust compliance frameworks to align with Malaysia’s evolving competition law regime.