UAE refers poultry cartel to prosecution over alleged price manipulation

UAE – The United Arab Emirates Ministry of Economy and Tourism has referred a group of companies in the poultry sector to the Federal Public Prosecution after concluding that they were involved in coordinated actions to fix and inflate market prices.

Officials said the decision followed findings that the firms took advantage of unusual market conditions to align pricing strategies in a way that increased poultry costs for consumers without justification.

The ministry stated that the conduct violates the country’s Competition Regulation Law and the Federal Consumer Protection Law, both of which prohibit practices that distort pricing and restrict fair market competition.

It added that the referral is part of broader inspection operations carried out with other government bodies, which have been stepped up recently to monitor compliance across retail and supply networks.

Competition enforcement authorities explained that the legal framework gives them the power to investigate suspected anti-competitive conduct, whether through complaints or independent monitoring, and to act in coordination with prosecutorial bodies when violations are identified.

Price fixing allegations

Under Article 5 of the Competition Regulation Law, agreements between market players that directly or indirectly influence pricing are prohibited, including arrangements that raise, suppress, or stabilise prices through coordination rather than open competition.

The law further extends restrictions to agreements that influence sales conditions, divide markets, or manipulate procurement processes such as tenders and bids, all of which are considered forms of unlawful coordination.

Market conduct under scrutiny

It also covers actions that restrict production, distribution, or marketing activity, as well as coordinated efforts to exclude competitors or limit their access to goods and services in the market.

Authorities warned that the scope of violations includes practices such as withholding supply, hoarding products, or creating artificial shortages that distort normal pricing mechanisms.

They added that such behaviour may involve coordinated boycotts or obstruction of certain firms, which can reduce market access and weaken competitive balance.

Economic stability concerns

The ministry noted that these practices carry broader consequences when they occur during periods of regional or economic strain, as they can directly affect food availability and price stability in the domestic market.

It concluded that maintaining fair competition is closely linked to protecting both consumer interests and national food security, particularly in essential sectors such as the poultry supply chain.

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