If that’s all they have to worry about…
Fines cut for 4 firms in chicken cartel appeal
Appeals on liabilities for price-fixing rejected but those for market-sharing pacts allowed.
Four fresh chicken distributors that were among 13 suppliers fined a record $26.9 million for price-fixing and non-compete deals in 2018 have had their financial penalties slashed on appeal.
Gold Chic Poultry Supply and its related company Hua Kun Food Industry had their total fine cut from $1.78 million to $513,992, while Toh Thye San Farm had its $2.27 million fine slashed to $724,507.
Lee Say Group, which comprises several companies, had its overall fine reduced from $11.4 million to $9.1 million, while the fine for Ng Ai Food Industries was cut from $1.91 million to $537,678.
The penalty reductions came after the Competition Appeal Board allowed appeals by the four distributors on their liabilities for market-sharing agreements.
The board noted in a written decision published on Tuesday that the Competition and Consumer Commission of Singapore (CCCS) had not proved that the four participated in a pact to not compete for one another’s customers.
But the board dismissed the appeals on their liabilities for price-fixing agreements.
The four-member board led by Senior Counsel Molly Lim also raised concerns in relation to the length of time the investigation took, saying that it found the process “wanting” .
It noted that 4� years elapsed from the formation of the investigation team in 2014 to the commission issuing its infringement decision in September 2018. This was “too long”, it said.
The board also noted that no independent interpreters were present when CCCS officers conducted interviews in Mandarin.
This “raises questions of impartiality and accuracy … which led to disputes in the comprehension and understanding of questions and answers”, it noted.
Although nothing turned on the investigation process, the board said much time was spent challenging it during the appeal.?
It suggested that the issues be addressed to avoid similar complaints in future and unnecessarily lengthening the hearing of the appeals.
A CCCS spokesman told The Straits Times that it will “study the observations made by Competition Appeal Board carefully to assess what actions ought to be taken to improve the processes for future cases”.
The spokesman added: “In this case, the hard-core cartel took place over seven years, where the distributors had control of over 90 per cent of the market and a total turnover amounting to approximately half a billion dollars annually.
“Such conduct is particularly harmful considering chicken is the most consumed meat in Singapore.”
Lawyer Lee Ee Yang, who acted for Gold Chic, said: “Our client is relieved that the proceedings are finally over and that the board has addressed some of the concerns that our client had raised with regard to the investigation process.”
Source: The Straits Times
https://www.singaporelawwatch.sg/Headlines/Fines-cut-for-4-firms-in-chicken-cartel-appeal
