Competition Appellate Tribunal upholds CCP decision, fines Poultry Association Rs25mn
- Orders to pay the fine within 15 days
The Competition Appellate Tribunal upheld on Monday the decision of the Competition Commission and ordered the Poultry Association to pay a fine of Rs25 million.
The Competition Commission of Pakistan had imposed a fine on the Poultry Association for collusion in prices. While hearing the case today, the tribunal dismissed the Poultry Association’s appeal and ordered it to pay the pay.
However, the tribunal, on the request of the counsel, reduced the fine from Rs50 million to Rs25 million.
Poultry cartelization case: CCP conducts hearing
The tribunal ordered the Poultry Association to deposit the fine within 15 days.
Earlier this year, the CCP imposed a collective fine of Rs155 million on eight major poultry hatcheries for “cartelisation and price-fixing of day-old broiler chicks (DOCs)”.
According to the CCP, the Section 4 of the Competition Act, 2010 prohibits collusive arrangements to fix prices, control supply, or restrict production.
“Such practices damage competition in the market. Trade associations are meant to help develop their sectors, not to share price-sensitive information or facilitate cartelisation. Price-fixing through associations is a serious market distortion and an exploitation of consumers. Prices must be determined by free demand and supply forces.”
The CCP also noted fresh complaints that hatcheries were again engaging in collusion.
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