People For Animals (PFA) Vs Venkateshwara Hatcheries Pvt. Ltd. (Competition Commission of India)
The information was filed by People for Animals (PFA), a registered trust engaged in animal welfare activities, before the Competition Commission of India under Section 26 of the Competition Act, 2002. The Informant alleged abuse of dominant position and anti-competitive vertical restraints by a leading poultry group and its associated entities in the Indian poultry industry.
The Informant described the poultry sector as comprising two distinct segments—commercial and backyard poultry—differing significantly in production methods, costs, and output. Commercial poultry, accounting for approximately 80% of the sector, involves specialized breeding, feed, and controlled production systems, whereas backyard poultry is characterized by low-input, localized production. The Informant further delineated two separate product markets within commercial poultry: layer hens (for egg production) and broiler chickens (for meat), citing differences in inputs, end-use, and consumer preferences, thereby establishing limited substitutability between the two.
The Informant alleged that the opposite parties (OPs), through vertically integrated operations across breeding, feed production, equipment, and processing, exercised significant control over the poultry value chain. It was claimed that the OPs were dominant in supplying parent stock of specific poultry breeds and held substantial influence through industry associations.
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