Armenian poultry farms fined for abusing position
Armenian State Commission for Protection of Economic Competition will penalise three major poultry farms in Lusakert, Arzni and Yerevan for abusing their dominating position within the local market.
The farms are being fined 1% of their 2006 turnover.
The ruling was based on findings of a monitoring of eggs and chicken meat sales from April – December 2006, revealing that the cost of their products rose 65% while the cost of fodder remained unchanged.
The Commission also found that these farms produced more eggs and poultry meat within that period than they sold. It said they could keep prices low by throwing more products into 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.