Law:

Section:

Competition Act (XIX of 2010)--- ----Ss. 4(1), 4(2)(a) & 2(1)(q)----Prohibited Agreement---'Preventing, restricting or reducing competition in relevant market', object of---Determination---Advertisements containing different prices of poultry products, validity of---Discussion, approval or advertisement of prices by an association of undertakings would fall within ambit of anti-competitive behaviour---Violations made despite previous warnings by the Commission---Commission issued show cause notice to Poultry Association regarding a series of newspaper advertisements whereby different prices of broiler chicken and chicken eggs had been publicized---Association contended that the rates of poultry products were set by Market Committees of Local Governments; therefore, there was no liability on their part---Validity---Association was an undertaking in terms of S. 2(1)(q) of Competition Act, 2010, as the same was an association of undertakings engaged in the poultry business, comprised of members from across Pakistan---Association had notified the prices of three different products in two relevant markets, that were broiler chicken and chicken eggs, which prima facie constituted a 'decision' for the purpose of Competition Act, 2010---Any form of conduct between the undertakings, which assisted the coordination of commercial behaviour, especially related to pricing, production and sale, was treated as importing the object of 'preventing, restricting or reducing competition'---Actions of trade associations were scrutinized for competition concerns because of the ease with which their legitimate objectives could spill over into illegal coordination---Discussion between the undertakings regarding the role of the Government over a specific industry although would not fall within the ambit of anti-competitive behaviour, but the discussion, approval or advertisement of prices by an association of undertakings would---Association could influence the pricing trend in the overall markets through advertisements in question---Association had to ensure certain authority which had the implicit effect of manipulating the behaviour of players in the relevant…

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