Court upholds CCP’s authority in poultry price-fixing case

KARACHI: The Lahore High Court has upheld the Competition Commission of Pakistan’s (CCP) authority in regulating competitive practices, particularly in the case of price-fixing of day-old chicks within the poultry sector.

Justice Jawad Hassan dismissed a challenge to the CCP’s show-cause notices, reinforcing the Commission’s role in safeguarding a fair market environment and curbing monopolistic practices.

Justice Hassan said that show-cause notices, based on inquiry reports, should first be addressed within the CCP’s jurisdiction. Referring to the legal concept of ‘ripeness’, he clarified that judicial intervention is premature before the CCP issues a final decision. This ruling affirms the CCP’s autonomy to investigate and regulate anti-competitive behaviours without external obstruction.

The court highlighted that hindering the CCP’s work could impair its ability to counteract collusion and promote competitive integrity. Justice Hassan also underscored the judiciary’s responsibility to support regulatory bodies like the CCP in their mission to uphold fair business practices across sectors.

In the proceedings, the petitioner’s counsel argued that procedural irregularities in the inquiry report invalidated the show-cause notices. However, the CCP’s legal team contended that the petition was unmaintainable, a stance the court ultimately endorsed.

The CCP’s investigation revealed suspected collusion and price-fixing among hatcheries for day-old broiler chicks from 2019 to mid-2021, with forensic analysis indicating that pricing was coordinated through SMS and WhatsApp communications. An industry association was also implicated for potential involvement in pricing discussions. However, some poultry companies challenged the CCP’s notices and obtained a stay order temporarily halting proceedings.

In its press release, the CCP said that “this comprehensive 21-page judgment sets a strong precedent, affirming the CCP’s authority to uphold competition laws across Pakistan’s economy.”

It added that the CCP has strengthened its legal team to address complex regulatory challenges effectively. “This has led to more efficient case handling, with over 40 cases resolved in recent months by the competition appellate tribunal, high courts, and Supreme Court, resulting in the recovery of Rs100 million from entities engaged in anti-competitive practices.”