ISLAMABAD, Dec 15, 2025: Deciding a long-outstanding cartel case involving the Pakistan Poultry Association (PPA), the Competition Appellate Tribunal (CAT) has upheld the order of the Competition Commission of Pakistan (CCP) and disposed of the appeal filed by the association.
The tribunal, however, reduced the penalty from Rs. 50 million to Rs. 25 million, citing a judgment of the Supreme Court in a similar case, and directed the PPA to deposit the amount within 15 days of receipt of the order.
In 2010, the Competition Commission of Pakistan fined the Pakistan Poultry Association and its members Rs. 50 million for forming a cartel and illegally colluding on poultry product prices, in violation of Section 4 of the Competition Act. The action triggered prolonged legal proceedings over cartelization in the poultry sector.
During the hearing, counsel for the appellant told the tribunal that the association had no objection to the appeal being decided in line with the Supreme Court’s 2022 ruling in a similar case, in which the apex court had taken a lenient view and reduced the penalty.
Relying on the same reasoning, and with the consent of the appellant, the Appellate Tribunal reduced the total penalty to Rs. 25 million. The tribunal held that the facts of the present appeal were largely similar. It disposed of the case without examining the merits afresh.
[12/15, 12:21 PM] Sajid Gondal: Background – Findings from CCP Inquiry (2009–10)
In 2009, the CCP initiated an inquiry after receiving complaints about sharp increases in poultry prices, particularly day-old chicks, chicken meat, eggs, and poultry feed.
The inquiry found that prices of day-old broiler chicks surged sharply, rising from as low as Rs. 6 per chick to as high as Rs. 71.90 per chick by October 2009, despite the estimated cost of production being around Rs. 18 per chick.
Prices of poultry feed (50-kg bag) increased significantly, from an average of Rs. 955 in 2008 to about Rs. 1,343 by 2010, directly impacting poultry meat prices.
The inquiry noted that PPA regularly published and updated poultry prices on its official website, including:
o Day-old broiler chick: Rs. 46 per chick
o Live broiler (wholesale): Rs. 100 per kg
o Live broiler (retail): Rs. 106 per kg
o Chicken meat: Rs. 154–175 per kg
o Eggs: Rs. 55–60 per dozen (varied by region)
Evidence showed that PPA meetings and sub-committees coordinated prices and production, discussed measures to restrict supply, and fixed daily rates through meetings, SMS, and circulars, which the CCP concluded amounted to cartelization.
Based on these findings, the CCP held that the association and its members had violated Section 4 of the Competition Act and imposed a Rs. 50 million penalty in 2010.
The Poultry Association obtained a stay from the Islamabad High Court (IHC) against CCP’s enforcement action in 2010.
PPA also challenged the jurisdiction of the CCP before the Supreme Court of Pakistan in 2011, terming the CCP action ultra vires.
The Supreme Court decided the jurisdiction issue in 2020, allowing competition proceedings to move forward.
The Poultry Association obtained a stay from the Competition Appellate Tribunal (CAT), delaying final adjudication.
CCP’s new management filed an early-hearing application in 2024 before the Islamabad High Court, seeking vacation of the stay.
The Islamabad High Court vacated the stay, reviving proceedings before the Competition Appellate Tribunal.
The Competition Appellate Tribunal disposed of the appeal, upheld the CCP order with modification, and reduced the penalty to Rs. 25 million, directing payment within 15 days.
