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Competition watchdog ain’t no chicken when it comes to calling out unfair practices: The Egyptian Competition Authority (ECA) has initiated criminal proceedings against 21 major table egg producers for colluding to raise prices, according to a statement by the authority. The producers — who are members of the Table Egg Division of the Poultry Producers Union and its board — were referred to the Public Prosecution for violating provisions of the Competition Act.
“The offending producers represent around 50-70% of the market,” ECA head Mahmoud Momtaz told Ahmed Moussa on his show Ala Mas’ouleety (watch, runtime: 10:44), pointing to the massive profits these producers have amassed as a result of the manipulation of egg prices.
The allegation: Members of the division were allegedly discovered to be setting daily wholesale prices for white and red eggs, resulting in inflated prices that “do not reflect their real cost,” the ECA said. The division allegedly communicated with major farms to determine the prices, which it then disseminated to market participants through its Facebook page, the union’s page, and regional social media groups.
To make a free and fair market, you have to crack a few eggs: Horizontal agreements are the “worst type” of anti-competitive practice because they disrupt the free market and hurt consumers, the ECA said. The alleged cartel “deliberately undermined government initiatives” aimed at easing financial strains on citizens, including incentives extended to the private sector to improve economic efficiency, reduce costs, and ultimately lower market prices.
Egg producers respond: “We have not yet received any official notification related to this matter,” head of the table egg division at the General Union of Poultry Producers Ahmed Nabil Abdullah said in a phone conversation with Faten Abdel Maaboud on her show Salaat El Tahrir (watch, runtime: 11:43). He added, “We were surprised by the news [after hearing about it] through news platforms and social media.” Abdullah attributed the rise in egg prices to the significant increase in feed prices, which has caused substantial losses for producers.
