Penalty on Poultry Association by Competition Appellate Tribunal reduced by SC
Penalty on Poultry Association by Competition Appellate Tribunal reduced by Supreme Court under poultry cartel and poultry cartelization case.
مرغی اور حکومت کی لڑائی ۔۔ مضامینِ نو، ڈاکٹر محمد جاسر آفتاب
The Supreme Court of Pakistan has upheld the decision of the Competition Commission of Pakistan while pronouncing its decision on the appeal filed by the Pakistan Poultry Association against the decision of the Competition Tribunal, while reducing the fine.
Backgound of Penalty on Poultry Associaiton
The Competition Commission had imposed a fine of Rs 100 million on the Pakistan Poultry Association on February 29, 2016, on the basis of violation of Section 4 of the Competition Act, 2010. The first civil appeal against the order of the Competition Commission was filed by the Pakistan Poultry Association before the Competition Tribunal.
The Tribunal upheld the decision of the Competition Commission, against which the Pakistan Poultry Association filed an appeal in the Supreme Court. The Supreme Court of Pakistan has upheld the decision of the Competition Commission by reducing the fine in poultry cartel and poultry cartelization case.
Reduction on Penalty
According to a press release issued by the Competition Commission, the Supreme Court of Pakistan has reduced the amount of the fine from Rs 100 million to Rs 25 million and ordered payment within fifteen days. The reduction in fine has been made keeping in mind that the association had stopped advertising prices of poultry products a few days later.
According to a press release of the Competition Commission, the Pakistan Poultry Association had approved advertisements in the national press regarding prices of poultry products for price fixing, which is prohibited under the Competition Act. The first appeal against the order of the Competition Commission was filed by the Pakistan Poultry Association (PPA) before the Competition Tribunal and its decision was written by Member Technical Ahmed Owais Pirzada.
The Competition Tribunal held that by advertising prices of poultry products in the national press, the appellant clearly prevented, restricted and lessened competition in the relevant market, which is a clear violation of Section 4 of the Act, and is therefore upheld.
Appeal on Penalty on Poultry Association
The Pakistan Poultry Association filed an appeal in the Supreme Court against the said order of the Competition Tribunal, the decision of which has been made public. Furthermore, the Supreme Court of Pakistan has directed the Competition Commission to frame rules related to the imposition of fines and notify them in poultry cartel and poultry cartelization case
It may be noted that the Competition Commission had first issued show cause notices against 25 members of the Poultry Association in 2010 and imposed a fine of Rs 50 million on the PPA for violating Section 4 of the Competition Act.
In 2021, the show cause proceedings against the members of the said Poultry Association were resumed when the Islamabad High Court declared the injunction granted after a period of more than 10 years null and void.
Inquiry of the Competition Commission of Pakistan
According to the press release, inquiries were also conducted by the Competition Commission against the Pakistan Poultry Association in 2021, under which poultry feed mills allegedly fixed the price of feed and hatcheries jointly decided on the price of a day-old chick, which is prima facie a violation of Section 4 of the Competition Commission Act.
