THIRTEEN distributors of fresh chicken have been fined S$26.9 million for price-fixing and agreeing not to compete for customers, the largest total financial penalty in a single case to date, the Competition and Consumer Commission of Singapore (CCCS) said in a media statement on Wednesday.
Fresh chicken distributors import live chickens from farms in Malaysia and slaughter them in Singapore, selling the fresh chicken products to customers such as supermarkets and restaurants. The 13 distributors collectively supply more than 90 per cent of fresh chicken products in Singapore, with an annual combined turnover amounting to about half a billion dollars.
The 13 suppliers were fined between S$705,939 to S$11.4 million, taking into account relevant turnovers; the nature, duration and seriousness of the infringement; aggravating and mitigating factors, such as cooperation with the CCCS; and representations made.
"Particularly for this case, the large size of the industry, the high market shares of the parties, the seriousness and the long duration (of about seven years) of the cartel conduct contributed to CCCS imposing the highest total financial penalty in a single case to date," said the CCCS.