The Competition Appellate Tribunal affirms CCP’s decision on price-fixing by Poultry Association and orders Rs25 million fine, payable within 15 days.
ISLAMABAD: The Competition Appellate Tribunal on Monday upheld the decision of the Competition Commission of Pakistan (CCP), ruling that the Poultry Association had been involved in price-fixing and cartelization. The tribunal has ordered the association to pay a fine of Rs25 million, a reduction from the initial Rs50 million penalty originally imposed by the CCP.
The case stems from allegations that the Poultry Association had been involved in collusive price-fixing practices, specifically concerning day-old broiler chicks (DOCs). The CCP had earlier concluded that these actions violated Section 4 of the Competition Act, 2010, which prohibits any collusion aimed at controlling prices, restricting supply, or limiting production.
During the tribunal hearing, the Poultry Association’s appeal was dismissed, but the requested reduction in the fine was granted, lowering it from the original amount of Rs50 million. The tribunal has mandated that the fine be paid within 15 days from the ruling.
This decision comes after earlier fines were imposed on eight major poultry hatcheries earlier this year for similar violations of cartelization and price-fixing practices. The CCP noted that such actions severely distort market competition and harm consumers by artificially inflating prices.
CCP’s stance on price-fixing
The Competition Commission of Pakistan has consistently argued that trade associations should focus on sector development rather than sharing price-sensitive information or facilitating cartelization. According to CCP officials, price-fixing practices undermine the market economy, where prices should be determined by free demand and supply forces.
Despite the fine, the CCP also pointed out that new complaints had surfaced, alleging that some hatcheries were once again engaging in collusion, suggesting a recurrence of anti-competitive practices.
