The Competition Department at the UAE Ministry of Economy & Tourism has initiated their first enforcement actions under the country’s updated competition regime. On 19 April the Ministry referred several poultry companies to the Federal Public Prosecution after identifying coordinated conduct to fix and unjustifiably raise poultry prices. The Ministry found that the companies aligned pricing strategies and took advantage of exceptional circumstances, resulting in unjustified increases for consumers. The referral follows a period of intensified inspections: more than 15,480 visits between late February and mid‑April, aimed at monitoring essential goods and detecting pricing abuses.
In this case, the Ministry considers the conduct a breach of two separate legal regimes—the country’s antitrust and consumer protection regimes. In their investigation the Ministry found that the conduct violated Art. 5 UAE Competition Law (Federal Decree Law 36/2023). This provision prohibits restrictive agreements such as price‑fixing, artificial inflation or suppression of prices, collusive tendering, limiting production or distribution, and restricting the free flow of goods—including hoarding or creating artificial shortages. Furthermore, the Ministry found that the conduct violated the UAE Consumer Protection Law (Federal Law 15/2020, as amended by Decree‑Law 5/2023).
The consumer‑protection provisions were engaged because of the context, not because the conduct itself is a classic consumer‑protection violation. Three provisions of the UAE Consumer Protection Law were applicable since the Ministry deemed poultry as an essential good. The Ministry employed Art. 9 UAE Consumer Protection Law, which allows the Minister to set or cap prices of commodities in crisis situations, which the Ministry deemed directly relevant given the exceptional circumstances identified during the investigation. Furthermore, Art. 22 UAE Consumer Protection Law mandates the Ministry to monitor price movements and limit increases where necessary to protect consumers, especially in sensitive sectors. Finally, Art. 19 UAE Competition Law prohibits providers from withholding goods or manipulating availability to influence prices, which can overlap with coordinated supply behavior. In this case, the Ministry employed these provisions because poultry is an essential commodity and the alleged coordination occurred during a period of market strain, with direct impact on consumer access and affordability.
Poultry is one of 9 essential consumer commodities subject to strict price control rules under Cabinet Resolution 120/2022. Prices may not be increased without prior approval from the Ministry. The nine categories are: poultry, cooking oil, eggs, dairy products, rice, sugar, bread, wheat, and legumes. Because these goods are tied to food security, pricing conduct in respect to these products attracts immediate scrutiny. The Ministry emphasized that the alleged coordination occurred during exceptional regional conditions, warning that such practices may directly affect the UAE’s food and economic security. This context significantly heightens enforcement risk and explains why both competition and consumer‑protection tools were employed.
Violations of the UAE Competition Regulation Law may result in fines of no less than AED 100,000 (approx. USD 27,500) and not more than 10% of the undertaking’s annual UAE turnover.
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