April 26, 2011
 

Lusakert Poultry Farm to appeal anti-monopoly agency's verdict

A lawyer for Lusakert Poultry Farm from Armenia has said the company plans to appeal the verdict of the anti-monopoly agency, which decided to fine the firm recently for the abusal of its leading role in the market before the New Year.

The company's lawyer, Irina Hakobyan, accused the State Commission for Protection of Economic Competition (SCPEC) of violating the law, according to the media. Hakobyan said the SCPEC makes rulings to fine companies without providing evidence, as required by the law. She also argued that the AMD100 million (US$266,759) 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% amounts to AMD80 million (US$213,407).

On March 30, Armenia's State Commission for Protection of Economic Competition ruled to penalise the Lusakert poultry farm in the amount of AMD100 million (US$266,759) for abuse of its dominant position in the market and creation of an artificial shortage of eggs in late December 2010, when the households across the country were making preparations for the New Year and Christmas holidays. Eggs retail prices jumped by at least 40%, from AMD80 (US$0.21) to AMD120 (US$0.32) each, in a matter of days.

SCPEC chairman, Artak Shaboyan, said at that time that the agency had made a study of the market and found that the company had enough eggs prior to the holidays and it withheld eggs in order to create a shortage to raise prices.

Shaboyan warned against similar practices ahead of Easter when Armenian households treat each other with painted eggs.

The Armenian egg market is dominated by six major players, according to the media, and Lusakert has a 26% share.