Background of the case:

CCP took notice of a series of advertisements published in various daily newspapers by PPA regarding prices of:

(a) Live broiler chicken;

(b) Broiler chicken meat (collectively boiler chicken) and;

(c) Chicken eggs from 6th Oct, 2015 to 12th Oct, 2015.

Show cause notice was issued to PPA.

Order:

The order finds that by notifying the prices of poultry products under the banner of the association, PPA has taken an anti-competitive decision in violation of Section 4(1) read with Section 4(2) (a) of the Competition Act. It further states that PPA’s actions have the potential of influencing pricing trends in the market and manipulating the behavior of market players.

The order reiterates that while trade associations play an important role in the development of industries, exchange of any commercially sensitive information, including mere discussion of pricing-related matters is strictly prohibited under the Competition Act.

Penalty:

It is pertinent to recall that PPA was previously fined an amount of PKR 50 million by the CCP for violation of the same provisions of the Act in August 2010. It was also severely reprimanded from engaging in price-related discussions, and warned that the Commission would not take a lenient approach towards anti-competitive behavior in the future.

In view of the current violation, CCP, while imposing a cumulative penalty of PKR 100 Million on PPA, further directed it to cease and desist from advertising the rates of poultry products, and to submit a compliance report with the Registrar of CCP.

CURRENT STATUS:

PPA filed appeal before Competition Appellate Tribunal and the CAT has dismissed the appeal. PPA filed appeal before Supreme Court.