LHC Upholds CCP’s Power to Conduct Inquiry Against Poultry Feed Manufacturers

Lahore High Court vide Order dated 29-05-2024 has vacated a stay order that it had earlier granted to four poultry feed manufacturers against the show cause notices issued by the Competition Commission of Pakistan (CCP) for, prima facie, cartelization and price coordination of poultry feed. The vacation of the stay order has enabled the CCP to proceed against M/s Hi-Tech Feeds, Islamabad Feeds, Kausar Feed Mills, and Mukhtar Poultry Feeds. In 2020, the CCP took suo motu notice upon concerns raised and complaints made regarding a parallel increase in poultry feed prices. An inquiry was initiated and data was gathered from market sources which showed that there was indeed a simultaneous increase in price by poultry feed mills. The average quantum of increase in prices also appeared to be similar, which raised suspicion of collusive decision-making and a violation of Section 4 of the Competition Act, 2010. During the inquiry, the CCP also conducted a search and inspection of two major poultry feed mills based in Rawalpindi and Lahore. The inquiry report was concluded on the basis of available evidence and show cause notices were issued to nineteen feed companies for, prima facie, violation of Section 4 of the Competition Act, 2010. Out of those nineteen, the specified four companies, while employing legal tactics tried to delay the proceedings initiated by the CCP by filing writ petitions against the show-cause notices. The stay was granted by the Court against the show cause notices and as a result, the proceedings before the CCP’s Bench were stalled. CCP has made early applications in all cases of injunctions whereby CCP has been stopped from conducting inquiries against cartels and mafias