Politicians are not asked about the ‘chicken cartel’

KUALA LUMPUR: The Malaysian Competition Commission (MyCC) has denied investigating certain politicians in connection with cartel operations in the poultry industry.

Its chief executive, Iskandar Ismail, said ongoing investigations only focus on a group of poultry industry players whose actions may raise concerns under section 4 of the poultry industry law. competetion.

“The claim that the MyCC is investigating certain politicians is pure speculation,” he said in a statement.

Iskandar said there was also confusion among the public over the definition of “cartel” under the law.

“A cartel is formed by a confidential agreement between competitors in the same market.

“Before a cartel is created, there must be at least two competitors who agree not to compete in the relevant market.

“Usually this competing group would have agreed, among other things, to fix the products at the same price or to divide their market or to limit production,” he added.

Iskandar said a cartel is not a monopoly and vice versa because a monopoly is a company that has complete control over a product or service.

“If there is more than one player in the market, one or more companies can be in a dominant position if they hold around 60% of the market.

“So trying to equate cartel and monopoly as similar is completely wrong,” he said, Bernama reported.

As such, he said, MyCC hopes the public and the media understand the complexity of the investigation which involves multiple supply chain actors.

“A thorough investigation is needed and it may take time.

“We encourage those who believe they are involved in cartel practices in the poultry industry to come forward to seek leniency under section 41 of the act before they are investigated. “, he said, while urging all parties to refrain from speculation to avoid any disruption. the MyCC investigation and confuse the public.

Businesses, affected stakeholders and the public are encouraged to participate in investigations by contacting MyCC at 03-2273 2277 (IED) or by email at [email protected]

According to an earlier report, cartels continued to dominate the poultry industry due to political interference.

The report also said that the cartels also control the daily market of 1.5 million chickens, or 70% of the total 2.2 million chickens sold daily nationwide.

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