Latest news with #CompetitionCommissionofPakistan
Business Recorder
5 days ago
- Business
- Business Recorder
Govt mulling asking CCP to take action against vanaspati makers?
ISLAMABAD: The government is likely to direct the Competition Commission of Pakistan (CCP) to take action against vanaspati manufactures on suspension of collusive behaviour as the industry has not passed on the reduction in prices of commodity to the consumers, sources in Commerce Ministry told Business Recorder. On March 13, 2025, during discussion on presentation on status of availability and price fluctuation of vegetable ghee/ cooking oil, the Economic Coordination Committee (ECC) of the Cabinet directed that the Ministry of Industries and Production to present the status of availability and prices variation of the commodity in the next meeting of the ECC, given the rising price trend of vegetable oil. In this regard, the MoI&P held two meetings with Pakistan Vanaspati Manufacturers Association (PVMA) in April and May 2025 for deliberations. 'Anti-competitive practices'; CAT upholds Rs50mn fine on Vanaspati Manufacturers Association The data available with Pakistan Bureau of Statistics (PBS), Federal Board of Revenue (FBR) and Ministry of National Food Security and Research was also consulted. According to sources, it was observed that since early December, 2024, there had been a 24% decline in the international price of palm oil, whereas the price of cooking oil in the local market is still higher by 4.5% compared to the peak in international prices. An overview of Pakistan's Ghee sector suggested that import and marketing of edible oil and ghee is not regulated. PVMA is a registered association with 148 members and 450 licenced brands of ghee and oil. Market share of imported oil and oil seeds is 89% (3.842 Million MT) while locally produced-oil seeds have a share of 11% i.e., (0.474 Million MT) only. Total requirement of edible oil in Pakistan is around 4.2 to 4.3 million MT. Pakistan is the third largest importer of oil and oil seeds in the world and imported around 88% of palm oil/olein from Indonesia and around 11%imports from Malaysia. Furthermore, soft oils i.e., Soybean, Sunflower, Canola are imported from Argentina, Brazil, United States, Ukraine etc. PVMA maintained that current stocks of around 375,000 MT of palm oil and olein are available at ports, which are sufficient for one month. Furthermore, ships are arriving on regular basis. Regarding price, the PVMA revealed that it was a wrong perception that local edible oil or ghee market is closed and monopolistic as more than 148 manufacturers are registered with PVMA. Consequently, due to intense competition, it is not possible for a seller to sell at a higher price. The prices will further fall when the cheaper Palm oil/olein reaches ports within around two and half months. Moreover, due to new trade policy introduced by US, there is a recession in palm oil and olein market. The sources said that ample stocks are available in the country. However, the impact of international prices is generally transferred to local market after two months when the imported raw materials reach Pakistan. The impact of decreasing international prices in the month of December, 2024, was not transferred to general public despite lapse of more than two months. 'The Competition Commission of Pakistan should take necessary action to ensure no cartelisation in oil and ghee sector and provincial governments should vigilantly monitor the prices of different tier brands,' the sources continued. Copyright Business Recorder, 2025
Business Recorder
7 days ago
- Business
- Business Recorder
Finance minister lauds CCP's for ‘reducing pending court cases'
Federal Minister for Finance Muhammad Aurangzeb expressed satisfaction over the performance of the Competition Commission of Pakistan (CCP), saying the commission's had brought significant improvements, particularly in reducing the number of pending court cases. Addressing the Senate, the finance minister requested the chairman Senate Standing Committee on Finance and Revenue, to invite Dr Kabir Sidhu, Chairman CCP, for a detailed briefing to appreciate the true extant of reforms undertaken by the commission. He informed the house that over the past two years, the CCP's new management actively pursued litigation in various courts, which resulted in reducing the backlog of cases from 577 to approximately 300. Responding to a motion moved by Senator Mohsin Aziz, the minister emphasised that a transparent and robust regulatory framework is essential in a market-based economy to foster competition and ensure accountability. In this context, he highlighted CCP's recent performance as crucial and deserving of support. He shared that the CCP issued 11 major orders in the past year alone, imposing fines exceeding Rs1 billion. Of this amount, approximately Rs120 million has already been recovered. The inquiry process has been expedited, the issuance of show-cause notices has become more efficient, and the overall hearing mechanism has improved to ensure timely action against violators. The minister further stated that CCP's Cartels Department completed 20 inquiries during the current fiscal year, while the Office of Fair Trade finalised 13 investigations related to misleading advertisements and deceptive marketing. These investigations have led to the issuance of show-cause notices and the initiation of formal hearings, he said. He also informed the Senate about the establishment of a dedicated Market Intelligence Unit within the CCP, which proactively monitors market distortions, price manipulation, and other potential violations of competition law. The minister said that the unit has so far identified 170 potential violations across sectors such as banking, e-commerce, telecom, and real estate, with 28 inquiries already initiated. CCP tells Aurangzeb: 23 major actions taken against cartels and cos Highlighting the CCP's role in facilitating investment, he said that the commission Mergers Department approved 69 transactions during the current year, resulting completion of transactions worth $30 million in foreign direct investment (FDI). Moreover, the Exemptions Department granted 83 exemptions, helping to ease business operations. He added that a Centre of Excellence has also been established within the Commission to conduct research and data-driven analysis of various market sectors.
Business Recorder
18-07-2025
- 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.
Express Tribune
18-07-2025
- Business
- Express Tribune
Temu faces CCP scrutiny for anti-competitive practices
Listen to article Temu, a Chinese e-commerce platform, has come under the radar of the Competition Commission of Pakistan (CCP) over alleged misleading practices that are said to distort the local market. Temu entered the Pakistani market a few months ago with an aggressive digital advertising campaign, flooding platforms with promotional content. These ads, which promoted heavy discounts and seemingly risk-free purchases, quickly attracted consumers while putting local sellers at a disadvantage due to the scale and pricing Temu offered. A coalition of independent retailers and sellers, the Chainstore Association of Pakistan, submitted a grievance to the CCP, alleging that Temu's practices are anti-competitive and harmful to both consumers and domestic businesses. "We write to alert the Competition Commission of Pakistan regarding growing anti-competitive market behaviour stemming from the influx of unregulated foreign e-commerce platforms such as Temu and Shein," the statement said. These platforms, which have no physical or legal presence in Pakistan, are operating freely via online portals, offering artificially underpriced and/or substandard products shipped under the De Minimis exemption, without paying any taxes or import duties. Meanwhile, local retailers, online sellers, and manufacturers are fully compliant with tax, customs, and regulatory obligations. This creates a distorted and unfair playing field, with serious economic consequences. The association has pointed out the massive displacement of formal, tax-paying local businesses, along with the loss of consumer protection, quality control, and regulatory oversight. Temu is currently encouraging pre-payments in foreign currency with no cash-on-delivery option, which the association claims is likely to undermine the country's current account balance. "We request the CCP to take action and initiate a formal investigation into the market practices of such foreign platforms operating without compliance." The association has recommended regulatory collaboration with the Ministry of Commerce, FBR, and SECP to enforce registration and fair competition. It has also urged logistics and courier companies to only process shipments with valid commercial invoices and ensure each parcel has the correct declared retail value. It further called for the use of a verifiable tracking system and the submission of all shipment data digitally to relevant authorities for monitoring. Pakistan's formal retail sector, manufacturers, importers, and e-commerce players are being rendered uncompetitive by these practices, which pose long-term risks to the integrity of the country's tax and trade ecosystem. "These foreign operators are violating the spirit of fair competition and undermining Pakistan's regulated economy. CAP is ready to provide any assistance in this matter and supports all actions CCP deems appropriate," the association said. Additionally, a separate complaint has also been filed through the Office of Fair Trade in Islamabad by a group of independent sellers who claim that Temu is distorting the market and misleading consumers, making it difficult for local businesses to compete. One of the central allegations is Temu's pricing strategy, described by complainants as predatory. By selling products at extremely low prices, Temu is accused of undermining fair competition and threatening the survival of small local retailers who comply with all regulatory and taxation policies. Logistics and import industry insiders have reported that Temu frequently under-declares the value of goods, breaks high-value orders into smaller parcels to stay below tax thresholds, and mislabels products to avoid customs duties. These practices are not only unethical but also illegal and raise concerns about whether newly introduced policies will be effective if enforcement is not strengthened. Despite increasing evidence, customs authorities have taken limited action. While local businesses are often penalised for minor issues, platforms like Temu continue to operate without proper enforcement, creating an uneven playing field. Domestic sellers face growing regulatory and financial pressure despite contributing to local employment and the economy.
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
