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Business Recorder
15-07-2025
- Business
- Business Recorder
CCP imposes Rs1bn in penalties on cartels and deceptive advertisers
ISLAMABAD: The Competition Commission of Pakistan (CCP) issued 12 major orders during FY 2024-25, imposing penalties worth Rs1.007 billion on businesses involved in anti-competitive practices across key sectors including fertilizers, poultry, automobiles, pharmaceuticals, real estate, food, hygiene products, paints, and education. The Commission has strengthened its enforcement arm and streamlined hearings by curbing unnecessary delays. This fast-track approach is helping CCP resolve cases swiftly and enforces the law more effectively. Out of the 12 orders issued, eight were related to deceptive marketing. Three orders involved cartelization and price fixing. One order was issued on the direction of the Lahore High Court to address the issue of CCP's jurisdiction in a case involving the deceptive and fraudulent use of a trademark under Section 10(2) of the Competition Act. In a landmark case, CCP fined six urea manufacturers and their trade group — Fertilizer Manufacturers of Pakistan Advisory Council (FMPAC) — a total of Rs375 million for price-fixing. Each company was fined Rs50 million; the association was fined Rs75 million. Another major penalty of Rs155 million was slapped on eight poultry hatcheries for fixing prices of day-old broiler chicks. In deceptive marketing cases, Kingdom Valley was fined Rs150 million for false claims about its housing project. Unilever and Friesland Campina Engro were fined Rs75 million each for marketing frozen desserts as ice cream. Unilever also faced an additional Rs60 million penalty for deceptive ads for Lifebuoy products. Al-Ghazi Tractors was fined Rs40 million for false fuel efficiency claims. Hyundai Nishat Motors received Rs25 million fine for misleading ads about the Hyundai Tucson SUV. 3N Lifemed Pharmaceuticals was fined Rs20 million for using fake certification for dialysis machines. The fine was later reduced to Rs2 million by the Competition Appellate Tribunal (CAT). British Lyceum and Diamond Paints were fined Rs5 million each for publishing misleading advertisements. Copyright Business Recorder, 2025
Business Recorder
14-07-2025
- Business
- Business Recorder
CCP imposes Rs1 billion in penalties on cartels, deceptive advertisers during FY2024-25
The Competition Commission of Pakistan (CCP) issued 12 major orders during FY 2024-25, imposing penalties worth Rs1.007 billion on businesses involved in anti-competitive practices across key sectors including fertilisers, poultry, automobiles, pharmaceuticals, real estate, food, hygiene products, paints, and education, a CCP statement said on Monday. 'The commission has strengthened its enforcement arm and streamlined hearings by curbing unnecessary delays. This fast-track approach is helping CCP resolve cases swiftly and enforce the law more effectively,' the statement read. Out of the 12 orders issued, eight were related to deceptive marketing, it added. As per the details, three orders involved cartelisation and price fixing. One order was issued on the direction of the Lahore High Court to address the issue of CCP's jurisdiction in a case involving the deceptive and fraudulent use of a trademark under Section 10(2) of the Competition Act. Notices issued to sugar mills for rehearing in cartelisation case Moreover, CCP fined six urea manufacturers and their trade group—Fertilizer Manufacturers of Pakistan Advisory Council (FMPAC)—a total of Rs375 million for price-fixing. Each company was fined Rs50 million; the association was fined Rs75 million. Another major penalty of Rs155 million was slapped on eight poultry hatcheries for fixing prices of day-old broiler chicks. In deceptive marketing cases, Kingdom Valley was fined Rs150 million for false claims about its housing project. Unilever and Friesland Campina Engro were fined Rs75 million each for marketing frozen desserts as ice cream. Unilever also faced an additional Rs60 million penalty for deceptive ads for Lifebuoy products, CCP said. Al-Ghazi Tractors was fined Rs40 million for false fuel efficiency claims. Hyundai Nishat Motors received a Rs25 million fine for misleading ads about the Hyundai Tucson SUV. Deceptive marketing practices: CAT upholds CCP findings against marketers of PREMA Milk 3N Lifemed Pharmaceuticals was fined Rs20 million for using fake certification for dialysis machines. The fine was later reduced to Rs2 million by the Competition Appellate Tribunal (CAT). British Lyceum and Diamond Paints were fined Rs5 million each for publishing misleading advertisements. 'Cartelisation is a serious offence and will not be tolerated,' warned CCP Chairman Dr Kabir Sidhu. 'Cartels harm economic growth, violate consumer rights, and deter new investment,' he was quoted as saying in the CCP statement. He further emphasised that association platforms must not be used for 'price collusion or to facilitate market abuse', which leads to the exploitation of the entire nation.
Business Recorder
02-07-2025
- Business
- Business Recorder
CAT dismisses Reckitt Benckiser appeal in Strepsils case
ISLAMABAD: The Competition Appellate Tribunal (CAT) has dismissed the appeal filed by Reckitt Benckiser in the Strepsils case due to non-prosecution. The company's counsel sought an adjournment, citing that he was abroad. However, the Tribunal rejected the request, noting that a similar excuse was presented at the previous hearing. Earlier, the bench had imposed a fine of Rs 50,000 on the counsel for failing to appear. With no appearance once again, the appeal was dismissed. The Competition Commission of Pakistan (CCP) had imposed a penalty of Rs150 million on the company in 2021 for misleading advertising and deceptive marketing, which gave the impression that Strepsils was a medicated remedy for sore throat. The Tribunal also held hearings in several other key competition cases. Eight poultry hatcheries recently fined Rs155 million by CCP for anti-competitive practices in the sale of day-old chicks have filed individual appeals. The Tribunal admitted the appeals for regular hearing and fixed the cases for September 10, 2025. In another case, two appeals were filed by Fatima Fertilizer Limited against CCP's order on price fixing in the fertilizer sector. CAT admitted the appeals and suspended CCP's order. The next hearing is scheduled for September 10, 2025. The CCP had recently imposed fines totaling Rs375 million on six fertilizer companies, including Fatima Fertilizer and their trade body FMPAC. Arguments also concluded in the appeal filed by Unilever Pakistan and Friesland Campina Engro in the frozen dessert in advertisements. The case centers on the use of the term 'ice cream' instead of 'frozen dessert' on packaging. CCP had fined both companies Rs 75 million each in December 2024 for misleading consumers. The Tribunal has reserved its order and is expected to issue directions that could impact labeling practices for ice-cream and frozen dessert products. Copyright Business Recorder, 2025
Business Recorder
30-04-2025
- Business
- Business Recorder
‘Cartelisation': CCP imposes Rs155 million fine on poultry hatcheries
The Competition Commission of Pakistan (CCP) has imposed a collective fine of Rs155 million on eight major poultry hatcheries for 'cartelisation and price-fixing of day-old broiler chicks (DOCs)', according to its statement on Wednesday. 'The CCP took suo motu notice of cartelisation in the Day-Old Chick (DOC) market and initiated a comprehensive inquiry. The inquiry found that major hatcheries — including Sadiq Poultry, Hi-Tech Group, Islamabad Group, Olympia Group, Jadeed Group, Supreme Farms (Seasons Group), Big Bird Group, and Sabir's Group — engaged in coordinated price-fixing, in violation of Section 4 of the Competition Act, 2010,' CCP statement read. According to the CCP, the hatcheries formed a cartel and discussed prices in a WhatsApp group called 'Chick Rate Announcement,' administered by a senior official of Big Bird Group. 'Dr Shahid, Marketing Manager Big Bird Group, coordinated the daily price updates. He sent the next day's prices every day through phone texts or WhatsApp messages to the group members. CCP slaps Rs25m fine on Hyundai for misleading Tucson launch offer 'Dr Abdul Karim, Chairman Hatchery Affairs Committee of the Pakistan Poultry Association (PPA), and Major (R) Syed Javaid Hussain Bukhari, Secretary General of PPA, were also part of the group. 'Group members actively discussed and shared next-day prices for approximately 198 times, in the years 2019 to 2021. The Price-Sensitive Information was exchanged 108 times via text messages and 87 times through WhatsApp,' the commission said. The CCP further said that senior officials of the Poultry Association present in the group never stopped the sharing of price information, thereby facilitating the collusion. 'The cartel regularly announced uniform DOC rates for Punjab, and with minor freight adjustments, also influenced rates in Multan and Karachi. 'Between March 2020 and April 2021, the price of DOCs rose by 346%, from Rs17.92 to Rs79.92 per chick, contributing heavily to broiler meat price inflation.' 'Cartelisation': CCP issues show cause notices to International Steel & Aisha Steel Mills According to the CCP, the Section 4 of the Competition Act, 2010 prohibits collusive arrangements to fix prices, control supply, or restrict production. 'Such practices damage competition in the market. Trade associations are meant to help develop their sectors, not to share price-sensitive information or facilitate cartelisation. Price-fixing through associations is a serious market distortion and an exploitation of consumers. Prices must be determined by free demand and supply forces.' The CCP also noted fresh complaints that hatcheries are again engaging in collusion. Prices of day-old chicks have recently surged up to Rs230 per chick, while the fair market rate should be around Rs78 per chick.
