LAHORE: In a significant ruling, the Lahore High Court, under the guidance of Justice Jawad Hassan, has reaffirmed the authority of the Competition Commission of Pakistan (CCP) regarding the issuance of show-cause notices related to price fixing in the poultry sector, specifically concerning the sale of day-old chicks.
This ruling reinforces the CCP’s mandate to investigate and address monopolistic behaviors, thus promoting a more competitive marketplace. Justice Hassan clarified that challenges to show-cause notices, based on inquiry reports, cannot be made prematurely in the High Court.
Citing the principle of “ripeness,” he stated that cases should follow the CCP’s hearing process, with appeals permitted only after a final decision by the Commission. This judgment delineates the CCP’s jurisdiction, ensuring its independence in enforcing competition regulations without unwarranted interruptions.
The court highlighted that any obstruction of the CCP’s functions could impede its vital role in curbing anti-competitive actions and fostering fair business practices.
Justice Hassan also reiterated the judiciary’s responsibility to support regulatory bodies like the CCP in maintaining competition across various industries. The petitioner’s lawyer raised concerns about procedural errors in the inquiry report, arguing against the issuance of show-cause notices. However, the CCP’s legal representatives, including Barrister Asad Ullah Chatha and others, successfully defended the validity of the notices, a stance the court upheld.
The CCP’s investigation revealed potential collusion among eight hatcheries regarding day-old broiler chick pricing between 2019 and June 2021. Forensic findings indicated that pricing agreements were coordinated via SMS and WhatsApp among officials from these firms. Additionally, the Pakistan Poultry Association (PPA) was identified as potentially violating Section 4 of the Competition Act by participating in pricing discussions.
Meanwhile, poultry companies Sadiq Poultry and Islamabad Feeds have contested the show-cause notices and received a stay order that temporarily halts the CCP’s actions.
This detailed 21-page ruling sets a crucial precedent, bolstering the CCP’s capacity to enforce anti-trust legislation and promote fair competition within Pakistan’s economy.
CCP Chairman Dr. Kabir Sidhu has also taken steps to enhance the legal team’s expertise, enabling a more effective response to complex competition issues and regulatory challenges. This restructuring has led to the efficient resolution of over 40 cases by the Competition Appellate Tribunal, High Courts, and the Supreme Court, resulting in the recovery of Rs 100 million from entities engaged in anti-competitive practices.
