13 chicken distributors get 6 weeks to respond after Competition Commission finds new evidence

13 chicken distributors get 6 weeks to respond after Competition Commission finds new evidence

Malaysia chickens
(Photo: AFP/Jimin Lai)

SINGAPORE: Thirteen fresh chicken distributors have been given six weeks to respond after the Competition Commission of Singapore (CCS) uncovered further evidence during its investigations on alleged anti-competitive conduct. 

CCS said in a press release on Thursday (Dec 21) that they have issued a Supplementary Proposed Infringement Decision (SPID) against the companies.

The 13 distributors are:

  • Gold Chic Poultry Supply
  • Hua Kun Food Industry
  • Hock Chuan Heng Farm and its sole-proprietor Hy-fresh Industries
  • Kee Song Brothers Poultry Industries
  • Lee Say Poultry Industrial and its sole-proprietor Lee Say Group
  • Hup Heng Poultry Industries
  • KSB Distribution
  • Prestige Fortune
  • Ng Ai Muslim Poultry Industries
  • Sinmah Poultry Processing
  • Toh Thye San Farm
  • Tong Huat Poultry Processing Factory and Ban Hong Poultry.

They were first issued with a Proposed Infringement Decision (PID) in March 2016 following a CCS investigation into a complaint.

The watchdog said that the distributors engaged in "anti-competitive agreements to coordinate the amount and timing of price increases" and agreed in a non-aggression pact to not compete for each other's customers. 

After the distributors made their written and oral representations to the CCS in relation to the PID, new evidence "involving allegations of fact and admissions" were brought to CCS' attention. 

CCS then told the distributors that further investigations would be conducted on Sept 27, 2016. 

The companies subsequently applied for lenient treatment under the CCS' Leniency Programme, CCS said. 

Under the program, companies which meet "relevant criteria" will be entitled to reductions from the financial penalties, which is up to 10 per cent of the turnover of the business of the undertaking in Singapore for each year of infringement, for up to a maximum of three years. 

Source: CNA/ng