UAE refers poultry price-fixing cartel to prosecutors over illegal chicken price hikes during regional crisis

A group of businesses has been formally referred to the federal public prosecution by the UAE Ministry of Economy and Tourism after evidence confirmed their involvement in coordinating to manipulate poultry prices, the Emirates News Agency reported.

The ministry said the cartel exploited prevailing exceptional regional conditions to fix and artificially raise prices without justification — actions it described as a direct violation of the country’s competition and consumer protection laws. Authorities warned that such conduct threatens market stability at a time when supply continuity and price equilibrium are considered national priorities.

Poultry falls under a controlled pricing regime governed by Cabinet Resolution No. 120 of 2022, which covers nine essential commodities — including eggs, rice, bread, sugar, cooking oil, dairy, wheat, and legumes — and prohibits price increases without prior government approval.

The referral comes as the ministry escalates its inspection activities in coordination with local economic departments. Between February 28 and April 19 this year, more than 15,480 inspection visits were conducted across the country, uncovering 312 violations — predominantly unjustified price hikes — and resulting in the issuance of 1,005 warnings.

Under Article 5 of the UAE’s competition law, businesses are prohibited from entering into agreements — whether direct or indirect — that distort, restrict, or prevent market competition. Prohibited conduct includes price-fixing, bid collusion, coordinated boycotts of specific firms, limiting production or distribution activities, and artificially engineering supply conditions that push prices to unrealistic levels. The ministry noted that hoarding, unjustified stockpiling, and withholding goods from the market are also considered serious violations with broad economic consequences.

Officials stressed that the implications of such practices extend beyond legal liability, particularly when they intersect with exceptional regional circumstances, as they risk undermining the country’s food and economic security.

The ministry said it would continue monitoring pricing trends and market movements, with enforcement options including administrative penalties, fines, and prosecution referrals. The public has been urged to report suspected violations — including price manipulation, shortages, or fraudulent practices — through the consumer hotline or local authority channels.