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Chicken price shock: Bulk of suppliers accused of price-fixing
Chicken price shock: Bulk of suppliers accused of price-fixing
Live chickens are for sale at a wholesale meat market. Bloomberg file photo
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By
Siau Ming En
[email protected]
Published: 3:37 PM, March 8, 2016
Updated: 12:49 AM, March 9, 2016
(Page 1 of 2) - NEXT PAGE | SINGLE PAGE
SINGAPORE — In one of the worst anti-competitive cases involving an industry here, 13 fresh chicken distributors, who collectively account for more than 90 per cent of the fresh chicken market share, have been accused of coordinating price hikes and agreeing not to compete for each other’s customers for at least seven years.
These acts were aimed at distorting the prices of fresh chicken products here and they reduced customer choices, said the Competition Commission of Singapore (CCS) on Tuesday (March 8). “The coordinated price increases further reduced customer choice, as it provided few options for customers to switch distributors,” a spokesperson added.
The 13 distributors allegedly involved have a combined turnover of approximately half a billion dollars annually, and include Lee Say Poultry Industrial, Hup Heng Poultry Industries and Ng Ai Muslim Poultry Industries. It is the first time such findings have been made against the fresh chicken industry.
Price-fixing is illegal here. Under the Competition Act, business entities are not allowed to enter into any agreement that prevents, restricts or distorts competition. The CCS has issued a written notice called a proposed infringement decision to the distributors.
The notice sets out the facts on which the CCS made its assessment and the reason for its decision.
Chicken price shock: Bulk of suppliers accused of price-fixing
Chicken price shock: Bulk of suppliers accused of price-fixing
Live chickens are for sale at a wholesale meat market. Bloomberg file photo
View all comments
[Pin It]
Tweet
By
Siau Ming En
[email protected]
Published: 3:37 PM, March 8, 2016
Updated: 12:49 AM, March 9, 2016
(Page 1 of 2) - NEXT PAGE | SINGLE PAGE
SINGAPORE — In one of the worst anti-competitive cases involving an industry here, 13 fresh chicken distributors, who collectively account for more than 90 per cent of the fresh chicken market share, have been accused of coordinating price hikes and agreeing not to compete for each other’s customers for at least seven years.
These acts were aimed at distorting the prices of fresh chicken products here and they reduced customer choices, said the Competition Commission of Singapore (CCS) on Tuesday (March 8). “The coordinated price increases further reduced customer choice, as it provided few options for customers to switch distributors,” a spokesperson added.
The 13 distributors allegedly involved have a combined turnover of approximately half a billion dollars annually, and include Lee Say Poultry Industrial, Hup Heng Poultry Industries and Ng Ai Muslim Poultry Industries. It is the first time such findings have been made against the fresh chicken industry.
Price-fixing is illegal here. Under the Competition Act, business entities are not allowed to enter into any agreement that prevents, restricts or distorts competition. The CCS has issued a written notice called a proposed infringement decision to the distributors.
The notice sets out the facts on which the CCS made its assessment and the reason for its decision.
