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COMMISSION FINES POULTRY FARMS FOR ABUSE OF DOMINATING POSITIONS
ARMENPRESS
Apr 12 2007
YEREVAN, APRIL 12, ARMENPRESS: Armenian state commission for protection
of economic competition ruled yesterday to penalize three major poultry
farms in Lusakert, Arzni and Yerevan for abuse of their dominating
position in the local market.
The amount of the fine is 1 percent of their last year turnover.
The commission ruling was based on findings of a monitoring of eggs
and chicken meat sales from April to late December last year, which
revealed that the cost of their products rose 65 percent while the
cost of fodder they used remained unchanged.
The Commission also found that these three farms produced more eggs
and meat within that period than they sold. It said they could keep
prices low by throwing more products to the market.
It also said all three companies sold their products at the same
price, an implication that they could have struck a shadow agreement
to raise prices simultaneously.
ARMENPRESS
Apr 12 2007
YEREVAN, APRIL 12, ARMENPRESS: Armenian state commission for protection
of economic competition ruled yesterday to penalize three major poultry
farms in Lusakert, Arzni and Yerevan for abuse of their dominating
position in the local market.
The amount of the fine is 1 percent of their last year turnover.
The commission ruling was based on findings of a monitoring of eggs
and chicken meat sales from April to late December last year, which
revealed that the cost of their products rose 65 percent while the
cost of fodder they used remained unchanged.
The Commission also found that these three farms produced more eggs
and meat within that period than they sold. It said they could keep
prices low by throwing more products to the market.
It also said all three companies sold their products at the same
price, an implication that they could have struck a shadow agreement
to raise prices simultaneously.