Statement from the Acting General Rapporteur of the Competition Council regarding the opening of an ex officio investigation concerning the competitive functioning of the market for compound feeds for the poultry sector and other related markets.

In light of the conclusions of Competition Council opinion no. A/3/24 dated September 26, 2024, regarding the state of competition in the compound feeds market in Morocco, the Council, upon the proposal of its acting general rapporteur, decided to take ex officio action to initiate an inquiry procedure concerning certain tariff and non-tariff commercial practices observed in the market for compound feeds for the poultry sector and other related markets.

This ex officio investigation, carried out in accordance with the provisions of Article 4 of Law No. 20.13 concerning the Competition Council, as amended and supplemented, aims to assess the compliance of these practices with the provisions of Law No. 104.12 concerning price freedom and competition, as amended and supplemented.

It should be noted that the aforementioned Competition Council opinion, after noting the highly concentrated structure of the market for compound feeds for the poultry sector, highlighted several competitive dysfunctions present in this market and other related markets, particularly in the day-old chicks market; these two inputs represent nearly 75% of the cost price of broiler chickens and consequently influence their selling price.

This decision to initiate an ex officio investigation is part of the Competition Council’s exercise of its constitutional and legislative missions and powers aimed at regulating competition in markets and protecting consumer interests, especially regarding essential products that have a significant impact on their purchasing power.

It is important to specify that at this stage, the ex officio investigation is a procedural act that does not prejudge the existence of anticompetitive practices in the markets concerned. Indeed, only the deliberative bodies of the Competition Council can, after a substantive inquiry conducted in a contradictory manner respecting the rights of defense of the parties involved, rule on the validity of practices if the elements of the investigation and inquiry establish their existence.

Rabat, December 06, 2024