CCP fines poultry firms Rs155m for price-fixing cartel

KARACHI: The Competition Commission of Pakistan has slapped a fine of Rs155 million on eight major poultry hatcheries for operating a price-fixing cartel in the market for day-old broiler chicks (DOCs).

The CCP launched an investigation after taking suo motu notice of collusive behaviour in the sector. The probe found that the hatcheries used a WhatsApp group titled ‘Chick Rate Announcement’ to coordinate prices on a near-daily basis from 2019 to 2021.

Participants in the group shared pricing information 198 times -- via WhatsApp and text messages -- setting uniform DOC rates across Punjab, and indirectly influencing prices in Multan and Karachi. The price of day-old chicks rose by 346 per cent over the period, surging from Rs17.92 to Rs79.92, contributing significantly to food inflation.

The regulator determined that the conduct violated Section 4 of the Competition Act, 2010, which prohibits collusive arrangements that fix prices, restrict output or manipulate supply. The CCP noted that trade associations are expected to support sector development, not facilitate cartel activity or circulate price-sensitive information.

The hatcheries fined include several of Pakistan’s leading poultry businesses. According to the CCP, the collusion was facilitated by senior industry officials who failed to intervene despite repeated sharing of coordinated pricing data.

The commission also warned that recent complaints indicate renewed cartel activity, with DOC prices spiking to Rs230 per chick -- nearly three times the fair market rate. It urged industry participants to report anti-competitive conduct via its online complaint portal.