AVN Report
LAHORE: Justice Jawad Hassan of the Lahore High Court has upheld the validity of show-cause notices issued by the Competition Commission of Pakistan (CCP) addressing alleged price-fixing in the poultry industry, specifically the pricing of day-old chicks.
This decision reinforces the CCP’s mandate to tackle monopolistic practices and uphold a competitive market environment.
Justice Hassan observed that show-cause notices based on inquiry findings cannot be prematurely challenged in court, referencing the legal principle of “ripeness.” He emphasised that cases should undergo CCP hearings, allowing appeals only post-decision.
The court’s ruling reiterated the CCP’s jurisdiction and independence, with Justice Hassan cautioning that interfering in early stages would obstruct the CCP’s efforts to enforce fair competition laws.
Before granting relief under Article 199 of the Constitution, the court must ensure there are no alternative remedies or that other options are inadequate. The petitioner’s claims of procedural flaws in the inquiry were dismissed, affirming the CCP’s authority to proceed with the show-cause notices.
The case involves an investigation into suspected price-fixing and collusion among eight poultry hatcheries from 2019 to June 2021. Forensic analysis revealed coordinated pricing through SMS and WhatsApp messages from a hatchery official. Additionally, the Pakistan Poultry Association (PPA) was implicated for potential violation of Section 4 of the Competition Act by engaging in pricing discussions.
Poultry firms M/s Sadiq Poultry and M/s Islamabad Feeds had contested the notices, securing a stay order temporarily halting CCP proceedings.
This landmark judgment, a detailed 21-page document, sets a precedent for similar cases, enhancing the CCP’s capacity to enforce competition laws and promote fair competition.
Under the leadership of Chairman Dr. Kabir Sidhu, the CCP has strengthened its legal team to better address complex regulatory challenges, leading to the resolution of over 40 cases across various courts, recovering more than Rs100 million from businesses violating competition laws.
The court ruling is also a significant step in upholding the CCP’s independence and commitment to safeguarding competitive practices in the country.
