Latest news with #CompetitionCommissionofPakistan
Business Recorder
7 hours ago
- Business
- Business Recorder
Pharmaceutical sector: CCP grants six exemptions to undertakings for FY2024–25
ISLAMABAD: In line with its mandate to promote fair competition and protect consumer welfare, the Competition Commission of Pakistan (CCP) has granted six exemptions to undertakings in the pharmaceutical sector for the fiscal year 2024–25, under Section 5 of the Competition Act, 2010. These exemptions relate to specific restrictive clauses in commercial agreements — such as territorial exclusivity and non-compete provisions that would ordinarily be considered anti-competitive under Section 4 (Prohibited Agreements) of the Act. However, after conducting rigorous due diligence, including a detailed assessment of market structures, sector-specific regulations, and the commercial terms of the agreements, CCP determined that the arrangements in question contribute to production efficiency, technological advancement, and enhanced consumer access to critical pharmaceutical products. The Commission noted that these exemptions are expected to improve service delivery, increase the availability of medicines in underserved regions, and lead to better public health outcomes. Consumers stand to benefit from access to advanced pharmaceutical technologies, more reliable product information, and higher standards of service. Each exemption was granted for a specific duration and is subject to conditions that ensure the pro-competitive benefits clearly outweigh any potential adverse effects on competition. Importantly, the undertakings are required to avoid any form of price-fixing or collusive conduct, and pricing arrangements remain outside the scope of these exemptions. The pharmaceutical sector remains a priority area for CCP's exemption regime, with the Commission maintaining close coordination with relevant health regulators to ensure that such decisions serve the broader public interest. Copyright Business Recorder, 2025
Business Recorder
21 hours ago
- Business
- Business Recorder
CCP grants six exemptions to pharma sector
The Competition Commission of Pakistan (CCP) has granted six exemptions to undertakings in the pharmaceutical sector for the fiscal year 2024–25, under Section 5 of the Competition Act, 2010, read a press statement on Thursday. These exemptions relate to specific restrictive clauses in commercial agreements—such as territorial exclusivity and non-compete provisions—that would ordinarily be considered anti-competitive under Section 4 (Prohibited Agreements) of the Act, CCP said. However, after conducting rigorous due diligence, including a detailed assessment of market structures, sector-specific regulations, and the commercial terms of the agreements, CCP determined that the arrangements in question contribute to production efficiency, technological advancement, and enhanced consumer access to critical pharmaceutical products. The commission noted that these exemptions are expected to improve service delivery, increase the availability of medicines in underserved regions, and lead to better public health outcomes. 'Consumers stand to benefit from access to advanced pharmaceutical technologies, more reliable product information, and higher standards of service,' it said. The commission informed that each exemption was granted for a specific duration and is subject to conditions that ensure the pro-competitive benefits clearly outweigh any potential adverse effects on competition. 'Importantly, the undertakings are required to avoid any form of price-fixing or collusive conduct, and pricing arrangements remain outside the scope of these exemptions,' the commission stated. On Wednesday, the federal government, in an effort to boost pharmaceutical exports, announced the establishment of an empowered Pharma Export Promotion Council, PharmEx Pakistan, under the Trade Development Authority of Pakistan.
Express Tribune
2 days ago
- 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
3 days ago
- 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'.
Business Recorder
29-05-2025
- Business
- Business Recorder
Misleading advertisements: CCP imposes Rs150m penalty on housing society
ISLAMABAD: In a significant move to curb deceptive marketing practices, the Competition Commission of Pakistan (CCP) has imposed a penalty of Rs150 million on Kingdom Valley (Pvt) Limited for misleading advertisements concerning its housing project. Acting on a suo motu notice, CCP's Office of Fair Trade initiated an investigation and found that the company: 1- Falsely advertised its project as 'Kingdom Valley Islamabad', despite it being located in Mouza Choora, Tehsil & District Rawalpindi; 2- Misrepresented affiliations with the Naya Pakistan Housing Program (NPHP) and Naya Pakistan Housing and Development Authority (NAPHDA); 3- Publicized the project as 'NOC Approved' without accurate or complete disclosure regarding its approval status. The Commission bench, comprising Saeed Ahmed Nawaz and Abdul Rashid Sheikh, concluded that the company had violated Sections 10(2)(a) and 10(2)(b) of the Competition Act, 2010, which prohibit dissemination of false or misleading information to consumers. Consequently, Rs75 million was levied for each violation, amounting to a total fine of Rs150 million. In addition, the Commission noted serious non-compliance, including the company's failure to submit audited financial statements and non-compliance with CCP's directives. The company has also not filed financials with the SECP for several years, raising concerns about its governance and transparency. The CCP reiterates its commitment to protecting consumers from deceptive marketing practices and ensuring fair competition in the housing and real estate sector. Consumers and stakeholders are encouraged to report deceptive advertisements or anti-competitive behaviour to CCP via WhatsApp at 0304-0875255 or email at [email protected]. Copyright Business Recorder, 2025
