Competition watchdog uncovers price-fixing conspiracy among top chicken distributors

They coordinated price hikes.

The Competition Commission of Singapore (CCS) has busted thirteen chicken distributors for conspiring to fix prices of fresh chicken products here.

The thirteen distributors collectively supply 90% of fresh chicken products in the country and had a turnover of approximately half a billion dollars annually, the CCS said.
The CCS launched a probe into the fresh chicken distribution industry after it received a complaint on the alleged anti-competitive conduct. 

Upon completion of the investigation, CCS provisionally discovered that the distributors had coordinated the price increases of fresh chicken products sold in Singapore, from at least 2007 to 2014. The distributors had also agreed to not compete for each other’s customers.

These moves were aimed at distorting the prices of fresh chicken products in Singapore, the CCS said. It violates the Competition Act, which states that business entities should not enter into any agreement or arrangement that prevents, restricts or distorts competition.

“By agreeing not to compete for each other’s customers, the Parties restricted the choices available to customers. The coordinated price increases further reduced customer choice as it provided few options for customers to switch distributors,” said the CCS.

The CCS has issued a Proposed Infringement Decision (PID) against the thirteen distributors. They have six weeks from the receipt of the PID to make their representations to the CCS.