Lusakert poultry farm to appeal antimonopoly agency’s decision
19.04.2011,
22:36
A lawyer for Lusakert Poultry Farm said today the company intends to appeal the decision of Armenia’s antimonopoly agency, which ruled recently to penalize it in the amount of 100 million drams for abuse of its dominant position in the market before New Y
YEREVAN, April 19. / ARKA /. A lawyer for Lusakert Poultry Farm said today the company intends to appeal the decision of Armenia’s antimonopoly agency, which ruled recently to penalize it in the amount of 100 million drams for abuse of its dominant position in the market before New Year days.
Speaking to reporters the lawyer, Irina Hakobyan, accused the State Commission for Protection of Economic Competition (SCPEC) of violating the law. She said the SCPEC makes rulings to fine companies without providing evidence, as required by the law. She also argued that the 100 million Dram fine set by the SCPEC does not make 2% of the company’s earning in the previous year as required by the law. According to her, 2% make 80 million.
On March 30 Armenia’s State Commission for Protection of Economic Competition ruled to penalize the Lusakert poultry farm in the amount of 100 million Drams for abuse of its dominating position in the market and creation of an artificial shortage of eggs in late 2010 December when the households across the country were making preparations for the New Year and Christmas holidays. Eggs retail prices jumped by at least 40 percent, to between 80 and 120 drams (33 U.S. cents) apiece, just in a matter of days.
SCPEC chairman, Artak Shaboyan, said at that time that the agency had made thorough studies of the market and the findings show that the company had enough eggs prior to the holidays and that it withheld eggs in order to create a shortage and raise prices. Shaboyan warned against similar practices ahead of Easter when Armenian households treat each other with painted eggs. Armenian market of eggs is dominated by six major actors. Lusaket controls 26% of it. ($ 1 - 377 drams). -0-
Speaking to reporters the lawyer, Irina Hakobyan, accused the State Commission for Protection of Economic Competition (SCPEC) of violating the law. She said the SCPEC makes rulings to fine companies without providing evidence, as required by the law. She also argued that the 100 million Dram fine set by the SCPEC does not make 2% of the company’s earning in the previous year as required by the law. According to her, 2% make 80 million.
On March 30 Armenia’s State Commission for Protection of Economic Competition ruled to penalize the Lusakert poultry farm in the amount of 100 million Drams for abuse of its dominating position in the market and creation of an artificial shortage of eggs in late 2010 December when the households across the country were making preparations for the New Year and Christmas holidays. Eggs retail prices jumped by at least 40 percent, to between 80 and 120 drams (33 U.S. cents) apiece, just in a matter of days.
SCPEC chairman, Artak Shaboyan, said at that time that the agency had made thorough studies of the market and the findings show that the company had enough eggs prior to the holidays and that it withheld eggs in order to create a shortage and raise prices. Shaboyan warned against similar practices ahead of Easter when Armenian households treat each other with painted eggs. Armenian market of eggs is dominated by six major actors. Lusaket controls 26% of it. ($ 1 - 377 drams). -0-
