Latest news with #ResalePriceMaintenance
Business Recorder
6 days ago
- Business
- Business Recorder
Household appliances sector: Tribunal upholds CCP's order against price fixing
ISLAMABAD: The Competition Appellate Tribunal has upheld the order of the Competition Commission of Pakistan (CCP) against leading electronic home appliances brands for engaging in Resale Price Maintenance (RPM), a prohibited form of price fixing under the Competition Act, 2010. While maintaining the findings of contravention, the Tribunal reduced the monetary penalty imposed by the CCP to the tune of 90 million, directing the companies to deposit the amount within 30 days. The CCP had earlier imposed penalties on the companies after concluding that both the companies in the home appliances sector had engaged in anti-competitive conduct by restricting their dealers from selling products below specific prices, offering discounts, or providing package deals. In their defense before the Tribunal, the companies did not challenge the finding of contravention but argued that the penalty imposed was high. The Tribunal noted that the appellants demonstrated remedial actions by reimbursing to the dealers the amounts which were imposed by the companies under their price fixing policy. They also assured strict future compliance with the Competition Act. Taking the mitigating factors into account – particularly cooperative stance and restitution to affected parties – the Tribunal reduced the penalties imposed on both companies. The Tribunal also noted the companies' commitment to lawful business practices going forward. The CCP urges all undertakings to refrain from all forms of price fixing, including the setting of minimum or maximum resale prices and imposing restrictions on discounts or promotional offers, as such practices constitute serious violations of competition law. Copyright Business Recorder, 2025
Business Recorder
08-07-2025
- Business
- Business Recorder
CCP conducts 24 inquiries in 2024-25
ISLAMABAD: To ensure fair business practices in markets, the Competition Commission of Pakistan (CCP) conducted 24 new inquiries in corporate sector including 11 related to cartelization and 13 concerning deceptive marketing practices in 2024-25. The CCP undertook robust enforcement measures in fiscal year (2024–25), targeting cartelization, abuse of dominant position, and deceptive marketing practices. The Commission successfully concluded 14 investigations, which were forwarded for the adjudication process. The sectors under scrutiny included e-commerce, telecommunications, aviation, steel, transport, edible ghee and cooking oil, pharmaceuticals, construction, commodities, and education. The Cartel and Trade Abuse Department of the CCP, in its efforts to curb cartelization and market manipulation, initiated 11 new inquiries across various sectors, including e-commerce, telecommunications, aviation, steel, transport, edible ghee, cooking oil, and gas. In addition, 10 ongoing inquiries from previous periods were also under investigation. The department successfully concluded 9 inquiries, which were subsequently forwarded for adjudication. A key case involved ten steel structure suppliers allegedly engaged in bid rigging in tenders issued by power distribution companies (DISCOs). Another major case focused on two leading flat steel manufacturers accused of price fixing. In the transport sector, proceedings were initiated against the Transporters Goods Association (TGA) and the Local Goods Transport Association (LGTA) for allegedly fixing freight rates for cargo transport from Port Qasim. In the cables industry, leading companies were investigated for restricting their dealers from offering discounts below the notified prices—an act considered a prohibited agreement under Resale Price Maintenance (RPM). The CCP's Office of Fair Trade (OFT) initiated 13 new investigations against businesses involved in deceptive marketing practices. Additionally, 8 inquiries from the previous year remained ongoing. OFT successfully concluded five investigations—two in the pharmaceutical sector and one each in the construction, commodities, and education sectors. Notable cases of deceptive marketing included AR Amreli Builders for unauthorized use of Amreli Steels' trademark, Panther Tyres for allegedly misleading claims of being 'Pakistan's No 1 Tyre,' and FS Cosmetics for copying Dabur Amla Hair Oil's packaging — for making misleading claims. Chairman CCP, Dr Kabir Sidhu, stated that cartelisation, market manipulation through abuse of dominance, and deceptive marketing severely harm consumer rights and distort healthy competition. He emphasized that the CCP maintains zero tolerance for such practices and is committed to taking strict action against them. Copyright Business Recorder, 2025
Business Recorder
07-07-2025
- Business
- Business Recorder
FY2024-25: CCP ramps up enforcement against cartels, deceptive marketing
The Competition Commission of Pakistan (CCP) undertook robust enforcement measures in FY 2024–25, targeting cartelisation, abuse of dominant position, and deceptive marketing practices to ensure fair business practices in markets, a CCP statement read on Monday. As per the details, the commission initiated 24 new inquiries—11 related to cartelisation and 13 concerning deceptive marketing practices. 'It successfully concluded 14 investigations, which were forwarded for the adjudication process. The sectors under scrutiny included e-commerce, telecommunications, aviation, steel, transport, edible ghee and cooking oil, pharmaceuticals, construction, commodities, and education. Two firms found guilty of Rs1.13bn anti-competitive pact in pharmaceutical sector 'The Cartel and Trade Abuse Department of the CCP, in its efforts to curb cartelisation and market manipulation, initiated 11 new inquiries across various sectors, including e-commerce, telecommunications, aviation, steel, transport, edible ghee, cooking oil, and gas,' the statement read. In addition, the CCP said, ongoing inquiries from previous periods were also under investigation. 'The department successfully concluded 9 inquiries, which were subsequently forwarded for adjudication.' A key case involved ten steel structure suppliers allegedly engaged in bid rigging in tenders issued by power distribution companies (DISCOs). Another major case focused on two leading flat steel manufacturers accused of price fixing, according to the statement. In the transport sector, proceedings were initiated against the Transporters Goods Association (TGA) and the Local Goods Transport Association (LGTA) for allegedly fixing freight rates for cargo transport from Port Qasim. In the cables industry, companies were investigated for restricting their dealers from offering discounts below the notified prices—an act considered a prohibited agreement under Resale Price Maintenance (RPM). 'The CCP's Office of Fair Trade (OFT) initiated 13 new investigations against businesses involved in deceptive marketing practices. Additionally, 8 inquiries from the previous year remained ongoing. 'OFT successfully concluded five investigations—two in the pharmaceutical sector and one each in the construction, commodities, and education sectors,' the CCP said. CCP says recovered Rs10mn penalty from PIA for 'abusing dominant position' The commission further said notable cases of deceptive marketing had included AR Amreli Builders for unauthorised use of Amreli Steels' trademark, Panther Tyres for allegedly misleading claims of being 'Pakistan's No. 1 Tyre,' and FS Cosmetics for copying Dabur Amla Hair Oil's packaging— for making what it called misleading claims. Chairman CCP, Dr Kabir Sidhu, was quoted as saying in the statement that cartelisation, market manipulation through abuse of dominance, and deceptive marketing severely harm consumer rights and distort healthy competition. He emphasised that the CCP maintains zero tolerance for such practices and is committed to taking strict action against them.
Mint
30-04-2025
- Automotive
- Mint
NCLAT to hear Maruti Suzuki's appeal against CCI order on THIS date
Maruti Suzuki share price today: Shares of automaker Maruti Suzuki were in focus on Wednesday, April 30, after the company said that the National Company Law Appellate Tribunal (NCLAT) has notified the next date of hearing in a matter involving the Competition Commission of India (CCI) as May 14, 2025. 'This is in furtherance to our letter dated 15th April 2025, regarding the CCI matter. We would like to inform you that National Company Law Appellate Tribunal (NCLAT) has notified the next date of hearing and the case is listed on 14th May 2025,' Maruti Suzuki said in an exchange filing on Wednesday. Back in 2021, CCI had imposed a penalty of ₹ 200 crore on Maruti Suzuki for restricting discounts by dealers. This case was taken up by CCI based on an anonymous e-mail dated November 17, 2017. The allegations against Maruti were that a 'Discount Control Policy' implemented by India's largest automaker restricted dealers from giving discounts to their customers beyond the discounts prescribed by the company, and dealers providing extra discounts were punished by levying a penalty and/or restriction of supply. 'The Competition Commission of India (CCI) passed a final order against Maruti Suzuki India Limited (MSIL) for indulging in anti-competitive conduct of Resale Price Maintenance (RPM) in the passenger vehicle segment by way of implementing Discount Control Policy vis-à-vis dealers, and accordingly, imposed a penalty of ₹ 200 crore upon MSIL,' Ministry of Corporate Affairs said in a statement in August 2021. As per the ministry order, Maruti Suzuki reportedly used mystery shopping agencies (MSAs) to secretly visit its dealerships while posing as regular customers. This exercise aimed to find out whether dealerships were offering unauthorised discounts to buyers. If such discounts were found, the MSAs would collect audio or video evidence and report it to Maruti Suzuki's management. The company would then send an email to the dealership titled 'Mystery Shopping Audit Report,' confronting them about the discount and requesting an explanation. If the dealership failed to provide a satisfactory explanation, Maruti Suzuki would impose penalties—sometimes even warning of halting vehicle supplies. The company also controlled where the penalty had to be paid and how the collected amount was used, according to a statement from the ministry. However, Maruti had appealed this decision before the NCLAT, and obtained a stay on the penalty imposed by CCI. Maruti Suzuki share price was trading on a firm note on Wednesday, emerging as one of the top index gainers. Maruti Suzuki shares gained as much as 3.5% in trade today, hitting the day's high of ₹ 12273. The automaker started off the session on a subdued note but soon witnessed strong buying action and was trading close to the day's high in the afternoon trade. As of 1.45 pm, Maruti Suzuki stock was at ₹ 12218.40, up 3.13%. First Published: 30 Apr 2025, 01:13 PM IST
