UAE ministry refers poultry price‑fixing cartel to public prosecution

Abu Dhabi: The Ministry of Economy and Tourism has referred a cartel involved in anti‑competitive practices in the poultry market to the Federal Public Prosecution to initiate investigations and take the necessary legal action, after confirming that it exploited current exceptional circumstances by colluding to fix, manipulate and unjustifiably raise poultry prices. The ministry said these actions constitute a clear violation of applicable laws, particularly the Regulation of Competition Law and the Federal Law on Consumer Protection, and represent practices that harm consumer rights and undermine market stability. The move comes as part of ongoing inspection campaigns carried out by the ministry in cooperation with relevant authorities. These campaigns have intensified in recent times in light of prevailing conditions and have contributed to strengthening market oversight and ensuring retail outlets comply with laws and regulations. The ministry emphasised that the Regulation of Competition Law plays a key role in establishing mechanisms to address monopolistic practices and unlawful economic collusion that harm consumers. It said the law enhances competition protection, supports the growth of economic sectors and increases productivity. The law also grants the ministry authority to gather information, investigate anti‑competitive practices — whether based on complaints or on its own initiative — and take action against violators in coordination with competent authorities. Under Article 5 of the law, agreements between businesses are strictly prohibited if their objective or effect is to distort, restrict or prevent competition. This includes direct or indirect price‑fixing, artificial inflation or suppression of prices, and any form of coordination that undermines market mechanisms. The ban also extends to setting conditions for the sale or purchase of goods and services, collusion in tenders and bids, and agreements to limit or freeze production, distribution, development or marketing activities. It further includes coordinated boycotts of specific companies, obstructing their operations, or restricting the free flow of goods and services in the market. Such actions may involve hoarding, unjustified stockpiling, withholding products or creating artificial supply conditions that lead to unrealistic pricing, all of which are considered serious violations with wide economic implications. The ministry stressed that the risks associated with these practices go beyond legal breaches, particularly when they coincide with exceptional regional circumstances, as they can have a direct impact on the country’s food and economic security.