FY2024-25: CCP ramps up enforcement against cartels, deceptive marketing
As per the details, the commission initiated 24 new inquiries—11 related to cartelisation and 13 concerning deceptive marketing practices.
'It successfully concluded 14 investigations, which were forwarded for the adjudication process. The sectors under scrutiny included e-commerce, telecommunications, aviation, steel, transport, edible ghee and cooking oil, pharmaceuticals, construction, commodities, and education.
Two firms found guilty of Rs1.13bn anti-competitive pact in pharmaceutical sector
'The Cartel and Trade Abuse Department of the CCP, in its efforts to curb cartelisation and market manipulation, initiated 11 new inquiries across various sectors, including e-commerce, telecommunications, aviation, steel, transport, edible ghee, cooking oil, and gas,' the statement read.
In addition, the CCP said, ongoing inquiries from previous periods were also under investigation.
'The department successfully concluded 9 inquiries, which were subsequently forwarded for adjudication.'
A key case involved ten steel structure suppliers allegedly engaged in bid rigging in tenders issued by power distribution companies (DISCOs). Another major case focused on two leading flat steel manufacturers accused of price fixing, according to the statement.
In the transport sector, proceedings were initiated against the Transporters Goods Association (TGA) and the Local Goods Transport Association (LGTA) for allegedly fixing freight rates for cargo transport from Port Qasim.
In the cables industry, companies were investigated for restricting their dealers from offering discounts below the notified prices—an act considered a prohibited agreement under Resale Price Maintenance (RPM).
'The CCP's Office of Fair Trade (OFT) initiated 13 new investigations against businesses involved in deceptive marketing practices. Additionally, 8 inquiries from the previous year remained ongoing.
'OFT successfully concluded five investigations—two in the pharmaceutical sector and one each in the construction, commodities, and education sectors,' the CCP said.
CCP says recovered Rs10mn penalty from PIA for 'abusing dominant position'
The commission further said notable cases of deceptive marketing had included AR Amreli Builders for unauthorised use of Amreli Steels' trademark, Panther Tyres for allegedly misleading claims of being 'Pakistan's No. 1 Tyre,' and FS Cosmetics for copying Dabur Amla Hair Oil's packaging— for making what it called misleading claims.
Chairman CCP, Dr Kabir Sidhu, was quoted as saying in the statement that cartelisation, market manipulation through abuse of dominance, and deceptive marketing severely harm consumer rights and distort healthy competition.
He emphasised that the CCP maintains zero tolerance for such practices and is committed to taking strict action against them.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
2 hours ago
- Business Recorder
Alleged cartelization & anti-competitive conduct: CCP issues notices to PSMA, member sugar mills
ISLAMABAD: The Competition Commission of Pakistan (CCP) has issued notices to the Pakistan Sugar Mills Association (PSMA) and its member sugar mills to appear for a hearing in the matter of show-cause notices issued to PSMA and member mills in November 2020 for alleged cartelization and anti-competitive conduct. The proceedings are scheduled for August 4th, 5th, 6th and 7th, 2025. The hearing notices have been issued in compliance with the 21 May 2025 order of the Competition Appellate Tribunal (CAT), which directed the matter to be reheard by the Chairperson or Member of the Commission who was not part of the earlier conflicting opinions. The Tribunal further directed that the matter be decided preferably within 90 days. In 2021, the CCP had imposed a penalty of nearly Rs44 billion on PSMA and its member mills for violating competition laws. The order, however, was challenged in CAT, which questioned the legality of the casting vote exercised by the then Chairperson to break a 2-2 deadlock in the original four-member bench. The Tribunal held that no casting vote could be exercised in quasi-judicial proceedings under the Competition Act, 2010, and set aside the resulting order. Through the current notices, CCP has directed all concerned parties to nominate authorized representatives and appear with all relevant facts and material for the rehearing. Copyright Business Recorder, 2025
Business Recorder
2 hours ago
- Business Recorder
CAT dismisses ICAP's plea against CCP order
ISLAMABAD: The Competition Appellate Tribunal (CAT) has dismissed the appeal filed by the Institute of Chartered Accountants of Pakistan (ICAP) against the order of the Competition Commission of Pakistan (CCP), which had imposed a penalty over alleged price-fixing practices. The CCP, in 2008 had initiated suo motu proceedings against ICAP for issuing a revised Accounting Technical Release 14 (ATR-14), approved in its 197th Council meeting held on July 25, 2008. The revised ATR-14 introduced minimum hourly charge-out rates and fixed minimum audit fees for public sector entities. The CCP found this to be in violation of Section 4(1) of the Competition Ordinance, 2007, which prohibits anti-competitive agreements. The Commission declared ATR-14 null and void, directed its withdrawal from ICAP's Members' Handbook, and ordered publication of a withdrawal notice in two newspapers. A penalty of Rs1 million was also imposed on the Institute. ICAP challenged the order before the Tribunal, with senior counsel Dr Farogh Naseem contending that ICAP, as a statutory regulator, had the authority to prescribe minimum fees for audit services, particularly in the public sector. He requested the tribunal to overturn the CCP's decision. The CCP's legal team argued that regardless of its statutory status, ICAP could not fix prices in a competitive market. The Commission maintained that such conduct amounted to collusive price-fixing, which is strictly prohibited under the competition laws. After hearing both sides, the Tribunal upheld CCP's order and dismissed the appeal. In a separate matter, CAT also dismissed the Karachi Stock Exchange's appeal against CCP for alleged abuse of dominant position, terming it infructuous. Copyright Business Recorder, 2025
Business Recorder
17 hours ago
- Business Recorder
Notices issued to sugar mills for rehearing in cartelisation case
The Competition Commission of Pakistan (CCP) has issued notices to the Pakistan Sugar Mills Association (PSMA) and its member sugar mills to appear for a hearing in the matter of show cause notices issued to the PSMA and member mills in November 2020 for alleged cartelisation and anti-competitive conduct, according to a CCP statement on Wednesday. The proceedings are scheduled for August 4th, 5th, 6th and 7th, 2025. 'The hearing notices have been issued in compliance with the May 21, 2025 order of the Competition Appellate Tribunal (CAT), which directed the matter to be reheard by the Chairperson or Member of the Commission who was not part of the earlier conflicting opinions. The Tribunal further directed that the matter be decided preferably within 90 days,' the statement read. '$50mn in FDI': CCP approves 69 merger and acquisition in FY2024-25 In 2021, the CCP had imposed a penalty of nearly Rs44 billion on PSMA and its member mills for violating competition laws. The order, however, was challenged in the CAT, which questioned the legality of the casting vote exercised by the then chairperson to break a 2-2 deadlock in the original four-member bench. 'The tribunal held that no casting vote could be exercised in quasi-judicial proceedings under the Competition Act, 2010, and set aside the resulting order. 'Through the current notices, CCP has directed all concerned parties to nominate authorized representatives and appear with all relevant facts and material for the rehearing,' the CCP said. Meanwhile, Pakistan government now plans to urgently import 0.5 million tons through the public sector, after allowing the export of 0.8 million metric tons of sugar during the outgoing financial year—earning private operators just under $400 million in foreign exchange.
