Lahore High Court Affirms CCP’s Authority to Investigate Poultry Feed Manufacturers

The Lahore High Court, through an order dated May 29, 2024, has lifted a previous stay it had granted to four poultry feed manufacturers regarding show cause notices issued by the Competition Commission of Pakistan (CCP).

These notices were issued on suspicion of cartelization and price coordination in the poultry feed sector.

This vacation of the stay order now allows CCP to resume its proceedings against M/s Hi-Tech Feeds, Islamabad Feeds, Kausar Feed Mills, and Mukhtar Poultry Feeds.

The CCP had initiated a suo motu inquiry in 2020 following complaints and concerns about simultaneous price increases in poultry feed. Market data collected during the inquiry indicated a uniform rise in prices among poultry feed mills, suggesting possible collusive behavior in violation of Section 4 of the Competition Act, 2010.

As part of its inquiry, CCP conducted inspections at major poultry feed mills in Rawalpindi and Lahore. Based on the evidence gathered, CCP issued show cause notices to nineteen feed companies, including the aforementioned four, alleging violations of competition laws.

In response, these four companies had sought legal recourse by filing writ petitions to challenge the show cause notices and obtained a stay from the court, halting CCP’s proceedings.

CCP has now moved swiftly to lift these injunctions, enabling it to proceed with its inquiries into alleged cartel activities in the poultry feed industry.

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