Latest news with #CompetitionAppellateTribunal
Express Tribune
24-05-2025
- Business
- Express Tribune
Tribunal overturns ruling in sugar case
Listen to article The Competition Appellate Tribunal, while deciding the appeals filed by the Pakistan Sugar Mills Association (PSMA) and its member mills, has sent back the case involving a penalty of Rs44 billion to the Competition Commission of Pakistan (CCP) for a fresh hearing. In its short order, the tribunal directed that the matter be reheard by either the chairperson or any other member of the commission who was not a signatory to the earlier conflicting opinions and a final decision should be made preferably within 90 days. The CCP's original 2021 order was issued by a four-member bench that was evenly split. Two members, including the then chairperson Rahat Kaunain Hassan and member Mujatba Lodhi, supported the imposition of the penalty while the remaining two including Bushra Naz Malik and Shaista Bano wrote a dissenting note. To break the deadlock, the then chairperson exercised the "casting vote" under sub-section 5 of Section 24 of the Competition Act 2010 through a note dated August 13, 2021, effectively converting the stalemate into a majority ruling that upheld the penalty. The legality of the casting vote became the central issue in the appeals filed by millers. The tribunal has ruled that the chairperson has no authority to exercise a casting vote in quasi-judicial proceedings under the Competition Act. As a result, the chairperson's opinion based on the casting vote has been set aside. After fresh hearing, the decision of the chairperson or the assigned member will settle the matter and determine the violation of competition law by the PSMA and its member mills. The appellate tribunal has recently become fully functional following the federal government's appointment of a new chairman, allowing the tribunal to resume hearing on several long-pending appeals. In the sugar cartel case, the CCP had imposed penalties of Rs44 billion on the millers' association and 81 of its members. PSMA and its members had allegedly formed a cartel to manipulate prices and had collectively decided to export the sweetener. The CCP passed the order for violating Section 4 of the Competition Act.
Business Recorder
15-05-2025
- Business
- Business Recorder
Deceptive marketing practices: CAT upholds CCP's decision to penalise paint manufacturer
ISLAMABAD: The Competition Appellate Tribunal (CAT) has upheld the Competition Commission of Pakistan's (CCP) decision to penalize a paint manufacture for deceptive marketing practices, which is a violation of Section 10 of the Competition Act, 2010. The original penalty of Rs5 million was halved to Rs2.5 million, in light of the company's compliance-oriented approach. The tribunal's decision follows Diamond Paints' admission of guilt and a plea for leniency. Appreciating the company's willingness to comply with legal obligations, the CAT reduced the fine and disposed of the appeal. The CCP's original order was issued by a bench comprising Chairman Dr Kabir Ahmed Sidhu and Member Salman Amin. It stemmed from a complaint filed by Nippon Paint Pakistan (Pvt) Ltd, alleging that Diamond Paints failed to disclose key details in its Television Commercials (TVCs), specifically the presence and value of redeemable tokens in its paint buckets. CCP's investigation found that while the company included disclaimers on packaging and shade cards, it's TVCs — the first point of contact for many consumers — omitted this material information. The Commission concluded that such selective disclosure misleads consumers and violates their right to make informed choices. The order clarified that offering redeemable tokens without clearly stating their value in advertisements lacks a reasonable basis under Section 10(2)(b) of the Act. The CCP stressed that transparency in advertising is essential, particularly when promotional schemes like coupons or tokens can significantly influence purchasing decisions. Copyright Business Recorder, 2025
Indian Express
14-05-2025
- Business
- Indian Express
Volume-based discounts not against antitrust law, heavy-handed enforcement won't help India amid rising protectionism: Supreme Court
'Competition law is not designed to humble the successful' and 'heavy-handed enforcement' of regulatory policies 'divorced from market effects' will not help India's bid to emerge as a manufacturing hub for the world, the Supreme Court has cautioned. A bench of Justices Vikram Nath and Justice P B Varale said this in its judgment on Tuesday while affirming an April 2, 2014, order of the Competition Appellate Tribunal (COMPAT) which set aside a Competition Commission of India (CCI) finding that volume-based discounts offered by borosilicate glass tubing maker Schott India amounted to discriminatory pricing and abuse of the company's dominant position in the market. Justice Vikram Nath, writing for the bench, said, 'Competition law is not designed to humble the successful or to clip the wings of enterprises that have, through industry and innovation, secured a commanding share of the market. The true purpose of antitrust laws is to preserve the process of competition, i.e., to ensure that rivals may challenge the incumbent on the merits, that consumers enjoy the fruits of efficiency, and that technological progress is not stifled by artificial barriers. If mere size or success were treated as an offence, and every dominant firm exposed to sanction without tangible proof of competitive harm, the law would defeat itself: it would freeze capital formation, penalise productivity, and ultimately impoverish the very public it is meant to protect.' The judgement added, 'In today's global economic climate, prudence is vital. As the United States and Europe retreat behind their newly minted trade walls of protectionist policies to shield their homegrown markets, India's bid to emerge as a global centre for manufacturing, life sciences and technology will succeed only if regulation rewards scale and intervenes solely when genuine competitive harm is shown. Heavy-handed enforcement, divorced from market effects, would discourage the long-term capital and expertise the economy urgently needs. An effects-based standard is therefore not a mere procedural nicety. It is both a constitutional bulwark against arbitrary restraint of lawful enterprise and a strategic necessity if India is to capture the opportunities that more protectionist economies are in danger of forsaking.' Explaining the significance of the Competition Act 2002, the Supreme Court said, 'India's economic ascent rests on a delicate but decisive equilibrium. On the one hand, markets must remain contestable: no undertaking may extinguish rivalry by stratagems foreign to fair, merit-based competition. On the other hand, genuine achievement whether expressed in scale, efficiency or technological advance, must be rewarded and not punished, for it is the impetus for investment, innovation and consumer welfare.' The court further said, 'The Competition Act 2002 is the charter that secures both pledges. It equips the Competition Commission of India with wide-ranging powers of inquiry and remedy, yet it permits intervention only where hard evidence shows that the impugned conduct has caused, or is likely to cause, a demand rigorous fact-finding, adversarial testing of testimony and, above all, an effects-based appraisal that balances commercial justification against proven harm. Preserving this symmetry between discipline and encouragement is essential if the statute is to nurture robust rivalry while sustaining the confidence of domestic and global investors who increasingly view India as a premier destination for enterprise and innovation.' The case dates back to 2010 when Kapoor Glass complained to the CCI against Schott India, which was then the principal domestic manufacturer of neutral USP-I borosilicate glass tubing, accusing it of abusing its dominant position by offering exclusionary volume-based discounts, imposing discriminatory contractual terms, and refusing supply on occasions. After forming a prima facie opinion, the CCI directed the director-general (investigation) to inquire into the matter. The D-G's report concluded that Schott India had violated section 4 of the 2002 Act, dealing with the abuse of a dominant position by a company. After hearing the parties, the CCI levied a penalty of 4 per cent of Schott India's average of three years' turnover, equivalent to about Rs 5.66 crore, and also issued a cease-and-desist order against the company, from doing any discriminatory practices to any of the converters, on March 29, 2012. On appeal by Schott India, COMPAT annulled the penalty and held that the evidentiary material did not establish any abuse of the dominant position. The CCI and Kapoor Glass then approached the Supreme Court challenging the COMPAT order. Ananthakrishnan G. is a Senior Assistant Editor with The Indian Express. He has been in the field for over 23 years, kicking off his journalism career as a freelancer in the late nineties with bylines in The Hindu. A graduate in law, he practised in the District judiciary in Kerala for about two years before switching to journalism. His first permanent assignment was with The Press Trust of India in Delhi where he was assigned to cover the lower courts and various commissions of inquiry. He reported from the Delhi High Court and the Supreme Court of India during his first stint with The Indian Express in 2005-2006. Currently, in his second stint with The Indian Express, he reports from the Supreme Court and writes on topics related to law and the administration of justice. Legal reporting is his forte though he has extensive experience in political and community reporting too, having spent a decade as Kerala state correspondent, The Times of India and The Telegraph. He is a stickler for facts and has several impactful stories to his credit. ... Read More
Express Tribune
18-03-2025
- Business
- Express Tribune
CCP warns of policy action in face of sugar crisis
Listen to article The emerging sugar crisis has landed in the Competition Commission of Pakistan (CCP), which stated on Tuesday that it was closely monitoring the ongoing situation and strict enforcement and policy actions would be taken if any anti-competitive activities were found. Sugar prices have touched Rs175 per kg in Ramazan and are expected to rise further to Rs200 owing to the alleged cartel of sugar millers. The government had allowed sugar export to the millers, but it did not consider wider implications of the policy. Now, to arrest rising prices and meet consumer needs, the government is planning to import raw sugar for supply to the market. Earlier, the millers made significant money following exports of the sweetener and now dealers are expected to get a windfall with the import of raw sugar, putting both consumers and the government at a disadvantage. The CCP said that it had been actively working to curb cartelisation in the sugar industry by promoting fair competition and protecting the consumers. In 2020, the commission had launched an inquiry that revealed that sugar mills were engaged in price fixing and controlling supplies through coordinated actions facilitated by the Pakistan Sugar Mills Association (PSMA). As part of the investigation, the CCP also conducted raids at the PSMA offices. As a result, in August 2021, the CCP imposed huge penalties of Rs44 billion on sugar mills and the PSMA – one of the highest fines in its history. However, the decision was challenged in courts, leading to the issuance of stay orders by the Sindh and Lahore High Courts as well as the Competition Appellate Tribunal. It delayed the recovery of penalties. The CCP has consistently intervened to enhance transparency and competitiveness in the sugar sector. Its first inquiry in 2009 found evidence of PSMA's involvement in price fixing and manipulation of production and supply quotas. Consequently, the CCP served show-cause notices on certain sugar mills and the PSMA on July 16, 2010, though the proceedings were subsequently stayed by the Sindh High Court. Over the years, according to the CCP, it has issued multiple policy notes (2009, 2012 and 2021), recommending the federal and provincial governments to reduce market distortions. Key recommendations included deregulating the sugar sector, allowing market forces to determine prices and lifting restrictions on the establishment or expansion of sugar mills to encourage competition. In its latest policy note, the CCP advised the government to discontinue the practice of announcing support prices for sugarcane and instead adopt a market-based pricing mechanism. This shift will ensure a fair compensation to farmers while fostering efficiency and competition within the sector. Currently, 127 cases related to sugar cartelisation are pending in various courts, including 24 in the Supreme Court, 25 in the Lahore High Court, six in the Sindh High Court and 72 in the Competition Appellate Tribunal. To expedite the resolution of these cases, the government has recently appointed a new chairman and members of the appellate tribunal.
Express Tribune
28-02-2025
- Business
- Express Tribune
Tribunal restored with new hiring
Listen to article The federal government has appointed a new chairman and two members to the Competition Appellate Tribunal (CAT), restoring its functionality after a prolonged period of inactivity. According to a notification issued by the Federal Ministry of Law and Justice on Thursday, Justice Sajjad Ali Shah, a former judge of the Supreme Court of Pakistan, has been appointed as chairman of the tribunal. Additionally, Dr Faiz Elahi Memon and Asim Akram have been appointed as members. The tribunal serves as a specialised forum for handling appeals against decisions of the Competition Commission of Pakistan (CCP). Previously, in November 2023, Justice (Retd) Mazhar Alam Miankhel, former Chief Justice of the Peshawar High Court, was appointed as chairman. However, following his appointment as an ad hoc judge in the Supreme Court in June 2024, the tribunal became inactive once again. Despite its brief period of operation, the tribunal had made notable progress in resolving pending cases. By July 2023, it had issued 30 orders on appeals against CCP decisions, enabling the CCP to recover Rs100 million in compliance with these rulings.
