Latest news with #CompetitionAct
Business Recorder
3 hours ago
- Automotive
- Business Recorder
Punjab's ‘Green Tractor Programme': CCP may take suo motu notice of exclusion of imported tractors
ISLAMABAD: The Competition Commission of Pakistan (CCP) is likely to take suo motu notice of the exclusion of certain categories of imported tractor models from the Punjab government's upcoming 'Green Tractor Programme,' a move that could potentially violate Pakistan's competition laws by limiting market access and reducing consumer choice. Sources confirmed Business Recorder that the CCP is legally empowered to check any move restricting competition in Pakistani market or abuse of domestic position as well as restricted choices to the consumers. According to reliable sources, the Government of Punjab has approved PC-1 for the provision of 9,500 subsidised tractors (ranging from 75 to 125 horsepower) to farmers during the fiscal year 2025-26 under the 'Chief Minister's Programme for Provision of High-Powered Tractors.' A pre-qualification meeting of original equipment manufacturers (OEMs) and importers was also held recently. Punjab launches green tractor distribution scheme under wheat initiative However, stakeholders have raised concerns that the scheme selectively includes only locally manufactured tractors in the 50–65 HP category, while excluding imported models of similar specifications. The basis for this exclusion remains unclear and may amount to discriminatory treatment in violation of Section 3 and Section 4 of the Competition Act, 2010, which prohibit abuse of dominant position and restrictive agreements, respectively. According to the Punjab Government's Portal, 'The Green Tractor Scheme' gives farmers a subsidy of Rs0.1 million per tractor. Through balloting, the scheme will provide 9,500 tractors to farmers at subsidised prices. Farmers can choose tractors with 50 to 85 horsepower, all manufactured in the country. Locally manufactured tractors and any other local tractor manufactures, Kisan Bhai can get these tractors by just selecting in the online available registration form, according to the Punjab Government's Portal. Sources note that imported tractors—especially those in the 50–65 HP range—often feature advanced fuel-saving technology and other competitive advantages. Copyright Business Recorder, 2025
Business Recorder
3 hours ago
- Business
- Business Recorder
CCP continued robust advocacy drive during 2024-25
ISLAMABAD: The Competition Commission of Pakistan (CCP) continued its robust advocacy drive during 2024-2025, organizing a total of 37 awareness and training sessions to promote understanding and compliance with the Competition Act, 2010. These sessions targeted a wide spectrum of stakeholders including businesses, legal professionals, academia, government officials, and professional bodies. The Commission's outreach focused on key sectors to address issues such as deceptive marketing, cartelization, abuse of dominance, and emerging challenges in retail and e-commerce. The CCP collaborated with leading trade and business bodies including the Rawalpindi Chamber of Commerce and Industry (RCCI), Federation of Pakistan Chambers of Commerce and Industry (FPCCI), and Chainstore Association of Pakistan (CAP) to enhance awareness among businesses. To engage the legal and corporate sectors, the CCP partnered with the Institute of Chartered Accountants of Pakistan (ICAP), Institute of Business Administration (IBA), and bar associations like Islamabad High Court Bar Association (IHCBA) and Punjab Bar Council (PBC). Through Directors' Training Programmes, corporate executives were educated on competition compliance and good governance, while lawyers received advanced training on legal frameworks and enforcement mechanisms. In academia, the Commission delivered sessions at prominent institutions including GC University Lahore, Bahria University, University of Peshawar, The University of Faisalabad, and International Islamic University Islamabad, introducing students and faculty to core tenets of competition law through real-life case studies and interactive discussions. A key capacity-building milestone was a lecture by Dr Amber Darr on cartel screening and detection, which equipped CCP officers and other regulators with sophisticated tools to identify collusive behavior. Copyright Business Recorder, 2025
Business Recorder
3 days ago
- Business
- Business Recorder
Anti-competitive practices in power sector: CCP raids on offices of four companies suspected of bid rigging in tenders
ISLAMABAD: In a major enforcement action to curb anti-competitive practices in the power sector, the Competition Commission of Pakistan (CCP) conducted simultaneous raids on the offices of four companies suspected of bid rigging in tenders for the supply of transformer reclamation material to power distribution companies (DISCOs). The coordinated raids were carried out by CCP's authorised officers in Lahore and Gujranwala, targeting suppliers who are alleged to have colluded in manipulating the bidding process. These companies were found to be quoting identical prices and engaging in tender rotation — a classic hallmark of cartel behaviour. The action follows a formal complaint lodged by the Lahore Electric Supply Company (LESCO), which observed suspicious bidding patterns in recent procurement cycles. LESCO reported that multiple firms submitted bids with identical rates for various items, raising red flags regarding possible collusion. In response, the CCP initiated a formal enquiry under Section 4 of the Competition Act, 2010, which prohibits agreements that restrict competition, including bid rigging under Section 4(2)(e). A preliminary analysis of the bidding data revealed that certain companies appeared to be coordinating their bids to ensure pre-determined outcomes in tender awards. In some cases, these suppliers were found rotating their wins while maintaining price parity, thereby undermining the competitive tendering process and harming public procurement efficiency. This is not the first time CCP has uncovered such practices in the transformer materials market. In 2020, the Commission concluded a similar enquiry involving bid rigging by multiple vendors supplying transformer bushings and reclamation items to DISCOs, including LESCO, MEPCO, and GEPCO. In that case, CCP found collusion among at least five firms, and imposed significant penalties. The recurrence of such practices underscores systemic vulnerabilities in the public procurement mechanisms of the power sector and the need for stronger oversight by procuring agencies. If the ongoing investigation confirms collusive conduct, the Commission is empowered to issue show-cause notices to the implicated firms and proceed with hearings. Upon establishing contravention, CCP may impose penalties of up to 10% of annual turnover or PKR 75 million, whichever is higher. In addition, the Commission can recommend structural or behavioural remedies to prevent recurrence and restore market integrity. The CCP has urged the public, including procurement officers, business insiders, and concerned citizens, to come forward with credible information about cartelization or bid rigging. The Commission's Whistleblower Reward Scheme offers cash rewards ranging from PKR 200,000 to PKR 2 million, based on the quality and value of the information provided. Copyright Business Recorder, 2025
Business Recorder
4 days ago
- Business
- Business Recorder
CCP raids transformer material suppliers over suspected bid rigging
The Competition Commission of Pakistan (CCP) team has raided the offices of four suppliers involved in the provision of transformer reclamation materials to various power distribution companies (DISCOs). The raids were carried out simultaneously in Lahore and Gujranwala. These companies are suspected of being part of a cartel that manipulated bidding processes for transformer-related tenders. The CCP launched the raids as part of an ongoing enquiry into bid rigging practices in DISCO procurement. The enquiry was initiated after Lahore Electric Supply Company (LESCO) raised concerns with the CCP regarding identical bids submitted by various suppliers. A review of bidding data revealed that the companies often quoted identical prices and appeared to rotate tenders among themselves. CCP imposes Rs1 billion in penalties on cartels, deceptive advertisers during FY2024-25 Such practices fall under Section 4(2)(e) of the Competition Act, 2010, which prohibits collusion in tendering. Bid rigging not only distorts fair competition but also causes significant financial losses to the public exchequer. If the ongoing enquiry confirms any form of collusion, the CCP will issue show-cause notices to the companies involved. The CCP has also urged the public to report any such anti-competitive behaviour. Whistleblowers may be eligible for cash rewards ranging from Rs200,000 to Rs2,000,000, depending on the value and verifiability of the information provided.
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
