Dubai: 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 necessary legal action. This decision follows confirmation of the cartel's involvement in exploiting current exceptional circumstances by colluding to fix, manipulate, and unjustifiably raise poultry prices.
According to Emirates News Agency, these actions constitute a clear violation of applicable laws, particularly the Regulation of Competition Law and Federal Law on Consumer Protection. They represent practices harmful to consumer rights and market stability. The Ministry's decision is part of ongoing inspection campaigns conducted in cooperation with relevant authorities, which have intensified recently due to prevailing conditions.
These efforts have been instrumental in strengthening market oversight and ensuring that retail outlets comply with relevant laws and regulations. The Ministry highlighted the importance of the Regulation of Competition Law in establishing mechanisms to address monopolistic practices and unlawful economic collusion that harm consumers. This enhances competition protection, supports the growth of economic sectors, and increases productivity.
The law empowers the Ministry to gather information and investigate anti-competitive practices, whether based on complaints or on its own initiative, and to take action against them 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 coordination that undermines market mechanisms.
The prohibition also covers 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. Coordinated boycotts of specific companies, obstructing their operations, or restricting the free flow of goods and services in the market are also banned. This can involve hoarding, unjustified stockpiling, withholding products, or creating artificial supply conditions leading to unrealistic pricing, all of which are considered serious violations with broad economic implications.
The ministry emphasized that the risks associated with such practices extend beyond legal breaches, especially when they coincide with exceptional regional conditions, as they may directly impact the country's food and economic security.
