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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
Express Tribune
04-06-2025
- Business
- Express Tribune
Fertiliser firms fined for price fixing
Listen to article The Competition Commission of Pakistan (CCP) has cracked down on alleged collusion in the fertiliser sector, imposing Rs375 million in penalties for creating a monopoly and extracting billions from farmers. In response, the Fertiliser Manufacturers of Pakistan Advisory Council (FMPAC) has announced it will challenge the CCP order in court. Interestingly, these fertiliser barons had previously refused to pay multi-billion rupee dues on account of the Gas Infrastructure Development Cess (GIDC), instead obtaining stay orders from the courts. They had collected billions from farmers but failed to deposit these funds in the national exchequer — a matter that remains unresolved. The CCP, a watchdog for anti-competitive practices, launched a suo motu inquiry and imposed a penalty of Rs50 million on each of the six major urea manufacturers, along with a Rs75 million fine on FMPAC, totalling Rs375 million. The penalised companies include Fatima Fertiliser Limited, Fauji Fertiliser Company Limited, Fauji Fertiliser Bin Qasim Limited, Fatima Fertiliser Company Limited, Engro Fertiliser Company Limited, and Agritech Limited. According to the CCP's findings, these firms, in coordination with their trade association FMPAC, ran an 'awareness campaign' that effectively amounted to fixing urea prices nationwide. The Bench, comprising Dr Kabir Ahmed Sidhu and Salam Amin, concluded that this activity violated Section 4 of the Competition Act, 2010. While the manufacturers claimed to be setting prices independently, they failed to justify the remarkably synchronised pricing strategy. The CCP investigation revealed that the practice distorted competition and harmed farmers — particularly during the critical Rabi and Kharif seasons — by artificially inflating fertiliser prices and limiting market choices. The companies' attempt to shield themselves under the 'state action doctrine' was also dismissed. The CCP Bench found no formal government directive, or compulsion, to justify their collusive behaviour. Instead, the firms exploited a government instruction about raising awareness among farmers regarding urea prices. They used this as cover to jointly announce uniform urea prices across the country. The bench held that such "actions, taken under the pretext of complying with government instructions, effectively undermined market dynamics and distorted competitive pricing mechanisms." The CCP expressed concern that despite differences in input costs, economies of scale, market size, and gas prices, all six companies were selling a urea bag for the identical price of Rs1,768. The bench remarked that in a market where each company's production capacity and market share are publicly known, such coordinated disclosures cannot be viewed as incidental or competitively benign. Rather, the joint announcement amounted to overt collusion. Repeated directives from the Fertiliser Review Committee (FRC) also went unheeded, with companies failing to address supply imbalances. Notably, the CCP had earlier warned fertiliser manufacturers and FMPAC in 2010, 2012, and 2014warnings that did not lead to lasting change. The CCP chairman reiterated that trade associations should not serve as platforms for sharing price-sensitive information or coordinating pricing strategies. The Commission reaffirmed its commitment to ensuring competitive markets, protecting consumer welfare, and holding violators accountable. In response to the CCP's order, FMPAC issued a statement asserting it had no role in pricing decisions. It clarified that it does not determine or coordinate the pricing of urea or any other fertiliser product. As a non-commercial advisory body, FMPAC claimed it has never engaged in price-setting activities, and any implication otherwise is factually incorrect. FMPAC stated that the controversial advertisement was published under a formal directive from the federal government, communicated via the Fertiliser Review Committee (FRC). During the FRC's meeting on November 25, 2021 — held amid concerns about urea hoarding and market manipulation — it was resolved to initiate a public awareness campaign. FMPAC was directed to publicise the prevailing market price, which had already been acknowledged during the proceedings. FMPAC insisted that it acted in good faith to implement the government's directive, without involvement in setting or proposing the published price. The intent, it said, was to ensure transparency and protect farmers from exploitative practices — not to distort market dynamics. FMPAC plans to contest the CCP's interpretation and pursue legal remedy through the appropriate appellate forum. The Council expressed confidence that a fair and comprehensive review would confirm its actions were lawful and transparent.
Business Recorder
03-06-2025
- Business
- Business Recorder
CCP fines fertilizer firms, FMPAC Rs375mn for price fixing
The Competition Commission of Pakistan (CCP) has imposed penalties to the tune of Rs375 million on companies and an industry association for collusion in the fertilizer sector. According to a press statement released on Tuesday, the CCP took decisive action against anti-competitive conduct in the fertilizer sector, imposing a penalty of Rs50 million each on six major urea manufacturers. Moreover, the Fertilizer Manufacturers of Pakistan Advisory Council (FMPAC), a leading industry association, was fined Rs75 million. The CCP bench—comprising Dr Kabir Ahmed Sidhu and Salam Amin—concluded that six urea manufacturing companies, i.e. Fatima Fertilizer Limited, Fauji Fertilizer Company Limited, Fauji Fertilizer Bin Qasim Limited, Fatima Fertilizer Company Limited, Engro Fertilizer Company Limited and Agritech Limited in coordination with their trade association, FMPAC, 'under the guise of conducting an awareness campaign/advertisement, have effectively fixed the price of urea across the country'. IHC reserves verdict in fertiliser prices case 'Such conduct goes beyond the bounds of lawful information dissemination and enters into the realm of anti-competitive behaviour' in violation of Section 4 of the Competition Act, 2010. CCP said that despite claiming price independence, the manufacturers failed to justify their synchronised pricing strategy. 'The commission's investigation uncovered that the conduct not only distorted competition, but also harmed farmers across Pakistan, especially during the critical Rabi and Kharif season, by artificially influencing fertilizer prices and limiting market choice,' said CCP. The government body shared that the respondents' attempt to claim protection under the 'state action doctrine' was also rejected, asserting that no formal government directive or compulsion existed to justify their collusive behaviour. CCP noted that the respondents took advantage of a federal government directive regarding initiating an awareness campaign encouraging farmers regarding urea price and used it as a tool to fix the price in coordination among themselves and jointly announced the uniform price for the urea buyers/consumers. The bench also held that such 'actions, under the pretext of complying with government instructions, effectively undermined market forces and distorted competitive pricing mechanisms.' CCP shared 'with great concern' that despite significant variations in input costs, different economies of scale, size of the market, and different prices of gas, all respondents were charging an identical price for the size of the urea bag, i.e. Rs1,768 per bag. The bench also noted that 'in a market where each undertaking's production capacity and market share are matters of common knowledge, such a coordinated disclosure cannot be viewed as incidental or competitively benign. Rather, the joint announcement constitutes an overt manifestation of concerted conduct.' Moreover, repeated directions from the Fertilizer Review Committee (FRC) were given to the respondents to address their failure to manage supply imbalances. CCP informed that it had issued warnings to the fertilizer manufacturers and FMPAC in 2010, 2012 and 2014, 'which failed to produce any lasting change'.
